Digital Look.png

 

 

Ratings Agency Cuts Pearson Down to Size

 

 

Renae Dyer, Digital Look, London, 29 April 2016

 

Numis reiterated a ‘reduce’ rating and target price of 640p for Pearson on
Friday after the education publisher reported its first quarter trading
update.

 

The company reported a 4% drop in first quarter sales in underlying sales,
reflecting expected weakness in assessment revenues in the UK and US which
are weighted to the first half. Revenues were down 9% at constant exchange
rates and headline sales declined by 6%.

 

Pearson-logo-2016.png

 

Going pear-shaped

 

Pearson said it was trading in line with expectations during the period with
adjusted operating profit and adjusted earnings per share before the costs
of restructuring still expected to be £580-£620m and 50p-55p respectively.

 

“The first quarter is the smallest quarter for Pearson and very small in the
context of the year,” Numis said.

 

“We remain comfortable with a Reduce recommendation on Pearson, no change to
estimates, we retain a blended multiples based target of 640p.”

 

 

From:
http://www.digitallook.com/news/broker-recommendations/numis-reiterates-redu
ce-rating-for-pearson--1143709.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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