Pearson Outlook is Improving, say Analysts

Revenue rises in large markets such as the UK and Australia are encouraging for the publisher, say Morningstar equity analysts

Morningstar Analysts 4 May, 2018 | 10:17AM
Facebook Twitter LinkedIn

Pearson equity UK learning stock analysis

Pearson’s (PSON) first-quarter update today contained few surprises and was ultimately in line with Morningstar expectations for the full year. Underlying revenue rose 1%; however, excluding the impact of 2017 exceptional revenue in the growth division, the picture looks somewhat better, with revenue up just over 3% year on year.

We do not expect to make any material changes to our forecasts on the back of these results and reiterate our 800p fair value estimate, against a current share price around 866p. Following a strong recovery in the share price since third-quarter 2017, we believe the shares are currently fairly valued. The company has a narrow moat, which means that it has a limited competitive advantage.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Pearson PLC607.20 GBX-2.97Rating

About Author

Morningstar Analysts   -