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Pearson's fair value price target has been adjusted to £11.70 from £11.64, a small move that highlights how current updates are more about fine tuning than resetting expectations. Recent analyst commentary lines up with this, with modest price target changes such as JPMorgan's 10 GBp increase and others' trims to $13.90 and 1,120 GBp reflecting mixed but generally steady conviction rather than a sharp change in stance. Read on to see what is driving these moves and how you can keep track of the evolving analyst narrative around Pearson.
Stay updated as the Fair Value for Pearson shifts by adding it to your watchlist or portfolio . Alternatively, explore our Community to discover new perspectives on Pearson.
What Wall Street Has Been Saying
🐂 Bullish Takeaways
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JPMorgan nudged its Pearson price target higher by 10 GBp, which signals that, on its numbers, the risk or reward trade off still looks acceptable even after recent updates.
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Morgan Stanley kept its Equal Weight rating and left FY26 and FY27 adjusted operating profit estimates broadly unchanged after FY25 results. This points to a view that profitability assumptions remain intact despite tweaks to revenue forecasts.
🐻 Bearish Takeaways
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BofA cut its price target on Pearson to US$13.90 from US$15.70 and aligned its valuation multiple with a wider group of media peers. This suggests the firm is less willing to ascribe a premium to the shares.
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Morgan Stanley trimmed its target to 1,120 GBp from 1,170 GBp after reducing FY26 and FY27 revenue forecasts by 1% and 2%, respectively. This reflects some caution around top line momentum even as profit estimates hold steady.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!
We've flagged 1 risk for Pearson. See which could impact your investment.
What's in the News
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Pearson and Tata Consultancy Services agreed a multi year partnership that combines Pearson's learning and assessment capabilities with Tata Consultancy Services' Contextual AI and iON platforms to support AI powered workforce training and skills assessment for enterprises and governments.
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The partnership includes co development of AI led learning products, integration of Pearson's solutions into the Tata Consultancy Services iON platform, and use of Pearson's Versant English proficiency assessment in Tata Consultancy Services hiring and workforce programmes.
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Pearson appointed Simon Robson as Group CFO, with a planned transition from current CFO Sally Johnson. The company expects Robson to join on 30 March 2026 before becoming Group CFO and Executive Director on 8 May 2026.
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The company issued earnings guidance for full year 2026, outlining expectations for mid single digit group sales growth and segment level outlooks, and reported completion of a share buyback totalling 32,000,000 shares repurchased for £352m.
How This Changes the Fair Value For Pearson
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Fair value updated to £11.70 from £11.64.
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Revenue growth set at 4.65% compared with 4.63% previously.
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Net profit margin now 11.26% versus 11.24% before.
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Future P/E updated to 17.80x from 17.74x.
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Discount rate now 7.70% versus 7.69% previously.
Never Miss an Update: Follow The Narrative
Narratives link a company's real world story to a set of financial expectations and a fair value view, updating as new information comes through. They help you see how product moves, deals and risks fit together over time.
Head over to the Simply Wall St Community and follow the Narrative on Pearson to stay up to date on:
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How AI driven learning tools, digital products and partnerships with major tech platforms are shaping Pearson's role in education and skills.
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The impact of growing demand for upskilling, certifications and digital credentials on Pearson's courseware, assessments and workforce focused offerings.
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Key risks such as FX volatility, contract delays, regulatory changes, and competition from faster moving edtech providers that could affect revenues and margins.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include PSON.L .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
