JPMorgan hikes Pearson price target

(Sharecast News) - Educational publisher Pearson rallied on Wednesday after JPMorgan hiked its price target on the 'overweight' rated shares to 1,440p from 1,330p. The bank said Pearson could benefit from labour market disruption as job losses are likely to push more people into education.

It also said that job losses linked to AI would lead to a countercyclical increased demand for US higher education and training. This would boost demand for the company's products.

JPM said Pearson's integrated digital and assessment products and trusted brands will also protect it from AI encroachment, while AI could inspire more lifelong learning.

At 1340 GMT, the shares were up 3.1% at 1,035.50p.