BofA says LSE Group shares trading at 'material discount'

13th Apr 2023 13:54

(Sharecast News) - Analysts at Bank of America reiterated their 'buy' recommendation for shares of LSE Group, telling clients that the business's fundamentals were underpinned by "long-term secular trends" which in turn supported its high-quality growth on the topline.

And despite enjoying a similar growth outlook as the other members of the super league of data vendors, such as S&P or MSCI, its shares were trading at a "material" discount.

There were risks to be had nevertheless, they said, singling out a style rotation among investors, as LSE was a classic high-quality compounder.

That meant the shares were likely to underperform a strong rally in value stocks.

The group's investments in innovation also needed to be seen to pay off.

BofA kept kept its target price unchanged at 9,550.0p.