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AI · Growth · RELX · Valuation
Kepler Cheuvreux has added RELX to its Most Preferred List, reiterating a buy rating and a target price of 3,905 pence.
The brokerage believes fears of artificial intelligence disruption are overdone, with AI actually accelerating RELX's growth rather than undermining its business model. Kepler has raised its organic revenue growth forecasts for 2026 and 2027, citing reduced U.S. federal funding risk in the Scientific, Technical & Medical (STM) division and stronger outlooks for STM and Exhibitions.
The report highlights tangible gains from generative AI in the Legal division, with analytics now accounting for about 60% of revenues and AI-driven upgrades leading to repeated double-digit increases in average client spend. Unit costs are also falling due to AI deployment.
In STM, RELX is preparing to launch an AI-powered researcher platform. The company's stock is trading at a discount to peer Wolters Kluwer, and is expected to generate significant free cash flow and dividends.
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