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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

JPMorgan trims Pearson price target

(Sharecast News) - JPMorgan trimmed its price target on educational publisher Pearson on Tuesday to 1,420p from 1,440p, implying 30% upside potential and a 2027 price-to-earnings of around 17x. The bank noted that Pearson shares are down 15% over the past year, with the stock de-rating from 16x to circa 14.5x 2026 estimated earnings.

"Performance was constrained by growth being Q4 weighted and broader AI concerns," it said. "We believe that AI concerns are misplaced; indeed, Pearson can embed AI into its verified content and is one of the few companies that can benefit from AI workplace disruption.

"Growth should accelerate strongly in Q425 to circa 8%, laying the foundation for above guidance growth over the first 9 months of 2026E."

JPM said this should increase confidence in double-digit mid-term earnings per share growth, which would warrant a re-rating. It said Pearson, rated 'overweight', is one of its key picks for 2026 along with Relx, UMG and Publicis.

At 1500 GMT, Pearson shares were up 1.7% at 1,089.65p.

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Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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