UPDATE: Barclays Upgrades Pearson plc to Equal-Weight on Sentiment, Valuation
Barclays upgraded Pearson plc (NYSE: PSO) from Underweight to Equal-weight.
Barclays noted, "Pearson's relative P/E has fallen from a 50% premium to the European Market in January 2012 to a 13% premium now (vs 25% on average since 2002). While partly due to a market rally, this is also because operational disappointments have driven a derating. Post a small warning at the FY12 trading update and consensus downgrades, we believe sentiment on Pearson has reduced. We also believe that without Melorio, and with Penguin set to be combined with Random House, it will be easier to avoid disappointments in 2013."
Pearson plc closed at $18.63 on Wednesday.
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