Stock Market News
Credit Suisse ups target price on 'confident' Pearson
With Pearson's management showing signs of increasing confidence as the first quarter drew to a close, analysts at Credit Suisse saw reason to believe that the FTSE 100 educational publisher can deliver stronger earnings this year than first envisaged.
In a conference call with management, confidence was especially apparent over the North American higher education market, with chief executive John Fallon going so far as to highlight Pearson's "very good competitive performance" in the higher education adoption season, which lasts until mid-June.
Fallon said he was "very comfortable" with the way the company was performing as he talked about "doing exceptionally well" in the sell-through of Pearson products in colleges taking Digital Direct Access, which has the additional benefit of reducing demand for Open Educational Resources in those colleges.
"To us, this suggests that the company is not concerned about the potential impact of the Cengage Unlimited competing product line," Credit Suisse said in its Wednesday note.
For both Pearson's growth and core divisions, the outlook for modest growth was reiterated by management, but CS did note that, as the first quarter was a shorter trading period, it was "hard to extrapolate the trends" moving forward.
CS maintained its 'neutral' rating on Pearson and upped its price target on the group from 700p to 850p.
In a conference call with management, confidence was especially apparent over the North American higher education market, with chief executive John Fallon going so far as to highlight Pearson's "very good competitive performance" in the higher education adoption season, which lasts until mid-June.
Fallon said he was "very comfortable" with the way the company was performing as he talked about "doing exceptionally well" in the sell-through of Pearson products in colleges taking Digital Direct Access, which has the additional benefit of reducing demand for Open Educational Resources in those colleges.
"To us, this suggests that the company is not concerned about the potential impact of the Cengage Unlimited competing product line," Credit Suisse said in its Wednesday note.
For both Pearson's growth and core divisions, the outlook for modest growth was reiterated by management, but CS did note that, as the first quarter was a shorter trading period, it was "hard to extrapolate the trends" moving forward.
CS maintained its 'neutral' rating on Pearson and upped its price target on the group from 700p to 850p.
Related share prices |
---|
Pearson (PSON) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price