This information has been prepared by IG, a trading name of IG Australia Pty Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Pearson (Q3 statement 16 October)
First-half figures for Pearson showed some signs of growth despite ongoing problems in its US higher education division. Tough comparatives with its South Africa performance last year will make life difficult, and most of the improvement for the year should come from cost reduction. At 14.2 times earnings the shares are now just below their five-year average of 14.8, having seen a notable re-rating since the first half of the year.
Pearson has steadily lost ground since July, with the latest sell-off driving the shares close to the £7.57 high of March. A bounce from here will be positive if it can maintain momentum above the post-September 2017 trendline.
.jpg)
