Analysts at TD Cowen have initiated coverage of RELX Plc. (LN) (RELX) with a "Buy" rating and a price target of 35.00 GBP.
According to the analysts, the market has mistakenly classified RELX as a loser in the AI trend, even though the company is actually a beneficiary of AI thanks to its proprietary data, integrated workflows, and proven decision-making tools. Artificial intelligence enhances the value of RELXâs content and analytics, thereby supporting sustainable growth, margin expansion, and a revaluation of the stock.
TD Cowen views RELX as a high-quality provider of information services with strong market positions in its end markets of risk, science, law, and trade shows. This position is supported by sustainable competitive advantages, products integrated into workflows, and strong free cash flow generation.
The analysts expect RELX to achieve organic revenue growth of over 7% through fiscal year 2028, driven by continued growth in the risk and legal sectors, sustainable pricing power, and the increasing use of analytics and AI-powered decision-making tools. Although short-term volatility in the stock has been driven by concerns about disruption from generative AI, RELX has a structural advantage and is positioned to prove itself a long-term beneficiary of AI rather than a loser.
Source: Investing
Note: I am personally invested
