London Stock Exchange Group (LSEG) plays a vital role in the facilitation of capital markets and financial services. The London Stock Exchange is one of the oldest in the world, tracing its history back over 300 years.
The LSEG was created in October 2007 via a merger between the London Stock Exchange and the Milan Stock Exchange, Borsa Italiana.
The LSEG offers financial market infrastructure and provides financial data, analytics, news, and index products to over 40,000 clients in more than 170 countries. From traditional stock trading services to data solutions and post-trade services, LSEG has diversified its portfolio to cater to the evolving needs of market participants and investors worldwide.
LSEG has operations in more than 60 countries in Europe, the Middle East, Africa, North America, Asia Pacific, and Latin America. The group’s operations encompass stock exchanges, clearing houses, data services, and a multitude of financial technology solutions.
The company’s shares are publicly traded on the London Stock Exchange under the symbol LSEG and are part of the FTSE 100 index. The current CEO is David Schwimmer, who joined the group in 2018.
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LSEG EPS and Revenue Breakdown 2020-2023
| LSEG | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | 209.7p | £2.12 billion |
| 2021 | 85.8p | £4.96 billion |
| 2022 | 141.8p | £5.26 billion |
| 2023 | 139p | £5.64 billion |
Industry Comparison
LSEG Share Price & Dividend Yield
The LSEG share price has made solid gains in recent months after a few years of rangebound movement during the pandemic period. At the time of writing it is trading at 9,378p after gaining more than 18% in the last 12 months. It is now approaching its 2021 highs of over 10,000p per share.
The group pays a dividend, with the dividend yield currently at 1.23%.
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London Stock Exchange Group Share Price Forecast
The London Stock Exchange price target was lifted to 10,600p from 10,400p by analysts at Berenberg in a recent research note, with the firm maintaining a Buy rating on the shares. Meanwhile, Barclays analyst Michael Sanderson also raised the London Stock Exchange price target recently. He lifted it to 102p from 92p per share, keeping an Overweight rating on the stock. Finally, another firm which raised its target for LSEG recently is RBC Capital. The firm now sees the stock climbing as high as 10,800p, up from 10,200p. They kept an Outperform rating on LSEG shares.
Overall, analysts are bullish on the prospects for LSEG’s stock over the next 12 months, with data compiled by TipRanks showing nine out of 11 analysts have a Buy rating on the company, with the other two assigning it a Hold rating. The average price target is 10,393p, representing a potential 10% upside from current levels.
Our View: The LSEG shares provide investors with an attractive opportunity to invest in a stock that offers growth and dividend payments. The company is also embracing new technology such as artificial intelligence via a partnership with Microsoft that may also help boost its shares. LSEG is a stock to take a deeper look at.
Stock Suitability
Investing in London Stock Exchange Group (LSEG) shares can be a strategic decision for certain types of investors, and several factors should be carefully considered before making an investment in the company. Here are some key considerations:
LSEG operates within the dynamic and ever-evolving financial industry. Potential investors should assess their risk tolerance, particularly considering the inherent volatility and market dynamics associated with the financial services sector. However, investors with a lower risk tolerance may find LSEG shares attractive due to the company’s position as a key player in the global financial infrastructure and its relatively stable business model.
For investors seeking consistent income through dividends, LSEG’s dividend history could be appealing. However, they should also be aware that the dividend yield at other companies may be more attractive.
Prospective investors should assess their investment horizon and align it with their outlook for LSEG’s growth prospects and strategic initiatives. A positive assessment of the company’s long-term growth potential, driven by its strategic vision and industry positioning, may make LSEG shares a compelling investment for those with a longer-term investment horizon.
