JPMorgan trims Pearson price target

(Sharecast News) - JPMorgan trimmed its price target on educational publisher Pearson on Tuesday to 1,420p from 1,440p, implying 30% upside potential and a 2027 price-to-earnings of around 17x. The bank noted that Pearson shares are down 15% over the past year, with the stock de-rating from 16x to circa 14.5x 2026 estimated earnings.

"Performance was constrained by growth being Q4 weighted and broader AI concerns," it said. "We believe that AI concerns are misplaced; indeed, Pearson can embed AI into its verified content and is one of the few companies that can benefit from AI workplace disruption.

"Growth should accelerate strongly in Q425 to circa 8%, laying the foundation for above guidance growth over the first 9 months of 2026E."

JPM said this should increase confidence in double-digit mid-term earnings per share growth, which would warrant a re-rating. It said Pearson, rated 'overweight', is one of its key picks for 2026 along with Relx, UMG and Publicis.

At 1500 GMT, Pearson shares were up 1.7% at 1,089.65p.