RELX plc (RLXXF – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst David Amiras from Bank of America Securities maintained a Buy rating on the stock and has a p4,100.00 price target.
David Amiras has given his Buy rating due to a combination of factors indicating solid growth prospects for RELX plc. He underscores the company’s consistent performance and the positive full-year outlook for substantial underlying profit growth, which aligns with his expectations. The valuation of RELX shares, trading at approximately 20% below their U.S. counterparts, presents what he perceives as a discounted buying opportunity. Additionally, Amiras anticipates accelerated growth in the Legal division, driven by genAI technology, and in the STM division, beginning in 2024 and 2025 respectively, which bolsters the case for a Buy rating.
In his analysis, Amiras highlights several key divisional developments that reinforce his positive stance. The Risk division’s prospects are supported by encouraging industry data, while the Legal division is seeing successful adoption and enhancements of its genAI-enabled Lexis+ AI platform. The Exhibitions division is leveraging digital tools to augment growth, and the STM division’s ongoing growth is expected to be further propelled by genAI advancements. These factors collectively underpin Amiras’s projection of a 20% upside potential for RELX plc, justifying the maintained Buy recommendation and the price objective of 4,100 GBp.
According to TipRanks, Amiras is a 3-star analyst with an average return of 4.1% and a 62.50% success rate.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a p3,720.00 price target.
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RELX plc (RLXXF) Company Description:
RELX is a FTSE 100 diversified information and analytics company. The firm operates across four main areas: scientific, technical, and medical (34% of 2019 sales); risk and business analytics (29%); legal (21%); and exhibitions (16%). RELX Group has three listings: its primary one in London and two more in New York and Amsterdam.
