LONDON (ShareCast) - (ShareCast News) - UBS initiated its coverage of RELX Group on Friday with a 'buy' rating and a 1,600p price target.
"Having conducted a deep-dive analysis of the group, our valuation implies a 17% total shareholder return (including buybacks)," the bank said.

"A shift to recurring electronic revenues backed by unique datasets should enable it to leverage a fixed cost based with limited inflation, driving earnings before interest and tax (EBIT) growth. "

UBS said a high free cash flow conversion should also facilitate the information and analytics in mergers and acquisitions and capital management to enhance shareholder returns.

The banks sees additional upside potential if sterling continues to depreciate, with just 8% of revenues GBP-denominated.

"Proprietary research underpins our view that RELX can deliver 7% underlying fiscal year 2016-2018 earnings per share compound annual growth rate, enhanced to 12% CAGR by a weak GBP."

Shares fell 0.86% to 1,378p at 1009 BST.

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