From Morningstar:

The London Stock Exchange Group (LSEG) is thriving, with shares rising 92.79% in the last five years and a cumulative return rate of over 95.89%. Despite initial concerns about the acquisition of data giant Refinitiv, LSEG’s shares rose 32% in 2023, and it is now a globally significant provider of data, clearing, and liquidity to financial institutions.

LSEG is beloved by high-profile fund managers, although concerns about the UK as a marketplace persist. The company’s recent partnership with Microsoft, aimed at building AI models, has been seen as a promising step. However, the Quoted Companies Alliance found that one in four companies saw no advantage to being listed in London, which has affected LSEG’s image.

Niklas Kammer, Morningstar equity analyst, notes that LSEG still faces obstacles, with the Refinitiv acquisition potentially proving harder than anticipated. Despite this, fund managers like Nick Shenton point to LSEG as an opportunity for shareholders, as it is considered a strong global technology business hiding in plain sight.

Key Morningstar Metrics for LSEG Stock include:
• Fair Value Estimate: £90.08
• Morningstar Rating: ★★★
• Morningstar Economic Moat Rating: Wide
• Morningstar Uncertainty Rating: Medium

Bulls say LSEG is a fully-integrated financial exchange with core assets along the financial markets value chain. Bears say wide margins and opaque pricing practices by index providers could intensify regulatory oversight in the future.



Read more: London Stock Exchange: Tech Giant Hiding in Plain…