Pearson Downgraded But Remains Undervalued

Over the past three years, Pearson has experienced almost the perfect storm of negative events and now finds itself at a crucial juncture

Morningstar Equity Analysts 11 October, 2017 | 3:14PM

Computers in schools

Shares in education giant Pearson (PSON) have been under pressure in recent months as investors fear a slowdown in its key US market and worry about the sustainability of print business models in the age of online learning.

But Morningstar equity analysts rate the company as a four-star stock, which means that it is undervalued relative to its peers. While we have reduced our fair value estimate to 740p per share, this still represents a significant premium over the current market price of around 617p.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Pearson PLC512.40 GBX-1.65

About Author

Morningstar Equity Analysts  Morningstar stock and fund analysts cover 2,000 mutual funds, 2,100 equities, and 300 exchange-traded funds.

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