Pearson Continues to Execute Well, Analyst Remains Bullish

Goldman Sachs reiterated its Buy rating on Pearson (LON: PSON) following the company’s full-year 2024 results, citing strong capital allocation and solid execution of its strategic priorities.

The education group announced a larger-than-expected share buyback alongside its results, a move seen as a positive signal of confidence in future cash flows. 

Additionally, Pearson’s 2025 guidance was broadly in line with market expectations, reinforcing the company’s stable outlook.

Goldman Sachs maintained its bullish stance on the stock, forecasting 4.4% organic revenue growth for 2025, which aligns with Pearson’s own projections. 

The bank’s estimate for adjusted operating profit stands at £653 million, slightly ahead of the company’s implied guidance of approximately £641 million.

“We believe the company continues to execute well against its strategic priorities, supporting continued acceleration in group organic revenue growth,” Goldman Sachs stated. 

The investment bank also highlighted improving operating profit margins, driven by efficiency gains.

Pearson has been focused on expanding its digital learning offerings and streamlining operations to enhance profitability. 

The bank’s analysts see the company’s consistent revenue growth and disciplined cost management as key drivers of its improving financial performance.

With an increased share buyback programme and a solid outlook for 2025, Goldman Sachs remains optimistic about Pearson’s ability to deliver shareholder value.