By Benjamin Chiou
Date: Friday 15 Dec 2023
LONDON (ShareCast) - (Sharecast News) - JP Morgan has listed the London Stock Exchange Group (LSEG) as one of its top picks in the European diversified financials sector heading into 2024.
In a research note outlining the potential impact from lower interest rates on markets going into next year, JP Morgan reiterated its 'overweight' position on LSEG.
"We favour the LSEG, which we also place on our Analyst Focus List given its limited reliance on market volumes, low downside from falling rates, strong earnings trajectory and positive gearing to secular growth trends within the financial industry," the bank said.
JP Morgan forecasts a 13% compound annual growth rate in earnings per share at LSEG over 2023 to 2026.
The bank has a 11,200p target price for the stock, up from 10,400p previously, implying around 20% upside from Friday's level of 9,280p (more or less flat on the day).
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