LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg lowered their price target on analytics and decision tools provider Relx from 1,950p to 1,930p on Friday following the group's third-quarter trading update a day earlier.
Berenberg said Relx's year-to-date results revealed an acceleration in organic revenue growth versus H1, putting the company on track to deliver a solid 4% increase for 2019.

However, the German broker said the rounding of numbers disguised the minutiae of the growth rate, so it could not say definitively that the firm's scientific publishing wing grew faster in the third quarter than it had in the first half.

The analysts also said the same was true for Relx's risk and business information unit, but stated an acceleration could be inferred from management commentary regarding easier comparables and an improved trading environment.

"We continue to see clear attractions in this reliable and predictable business, which is well positioned to grow through any economic downturn," said Berenberg, which reiterated its 'buy' rating on the firm.

The reason for Berenberg's trimming of its price target on Relx was due to updates to its FX assumption, which it said "obviously" has negative implications given the high proportion of the firm's revenues and profits that are generated outside the UK.

"This is the sole reason for the c3% EPS downgrades that we publish with this report and the price target trim."

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