Thursday, July 19, 2007

Pearson Speculation (Again)

Yet again, an analyst has suggested that pressure on Pearson will grow given the sales of Harcourt and Thomson Learning at such high multiples. As reported in This is Money (Daily Mail), Deutsche Bank has raised Pearson to 'buy' based and,
demonstrated why, with a bullish 'sum of the parts' valuation on the stock of up to £10.2bn, or 1100p a share.
Currently, Pearson stock is at 823p. Furthermore (talking up the stock),
Mark Braley at Deutsche reckons Pearson's current share price, down 7½p at 823p, ' materially undervalues' the group. He added: 'There is a strong case for management to consider an aggressive restructuring of the portfolio.'
There is nothing to suggest that anything is imminent and Pearson has consistently said that they will resist a P/E advance.

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