London Stock Exchange Group: Battered By Overblown AI Concerns

Mark Dockray2.15K FollowersFollow5ShareSavePlay(8min)Comment(1)SummaryLondon Stock Exchange Group is rated "Strong Buy" as AI disruption fears appear overblown and shares trade at a discount to peers and their historical average.LSEG's Data & Analytics segment, central to AI concerns, derives most of its revenue from proprietary and specialized data that is less vulnerable to disruption.FTSE Russell, contributing over 10% of revenue, benefits from structural ETF growth and operating leverage, supporting margin and earnings expansion.Consensus expects healthy EBITDA and net income growth through 2027, while LSEG trades below both peer and historical earnings-based multiples. VV Shots/iStock Editorial via Getty Images AI-related concerns have weighed heavily on London Stock Exchange Group (LSEGY) (LDNXF) ('LSEG') of late. Investors are worried that the company's data-heavy business model is ripe for disruption from startups like Anthropic, whoseThis article was written byMark Dockray2.15K FollowersFollowI like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'.Analyst’s Disclosure: I/we have a beneficial long position in the shares of LSEGY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.