Pearson share price: Credit Suisse analysts flag stronger earnings

Analysts lift valuation on educational publisher

Pearson share price: Credit Suisse analysts flag stronger earnings

Credit Suisse has hiked its valuation on Pearson (LON:PSON), arguing that the educational publisher can deliver stronger earnings this year than first envisaged, WebFG News reports. The upbeat comments come after the FTSE 100 company updated investors on its quarterly performance last week, posting ‘a good start to the year’.

Pearson’s share price has been little changed in today’s session and as of 10:30 BST stood at 920.40p, flat in percentage terms, largely in line with the broader London market, with the benchmark FTSE 100 index currently 0.01 percent higher at 7,701.86 points. The group’s shares have added just under 30 percent to their value over the past year, as compared with about a 4.3-percent gain in the Footsie.

Credit Suisse upbeat on group

Credit Suisse reaffirmed Pearson as ‘neutral’ this week, while lifting its price target on the shares from 700p to 850p. WebFG News reported that in a conference call with management, confidence was especially apparent over the North American higher education market, with chief executive John Fallon going so far as to highlight the publisher’s ‘very good competitive performance’ in the higher education adoption season, which lasts until mid-June.

"To us, this suggests that the company is not concerned about the potential impact of the Cengage Unlimited competing product line," Credit Suisse said in a note, as quoted by the newswire.

Other analysts on Pearson

The 17 analysts offering 12-month price targets for Pearson for the Financial Times have a median target of 701.00p on the shares, with a high estimate of 975.00p and a low estimate of 450.00p. As of May 7, the consensus forecast amongst 18 polled investment analysts covering the blue-chip publisher has it that the company will underperform the market.

As of 10:47 BST, Friday, 11 May, Pearson plc share price is 920.20p.

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