Citi opens 90-day 'positive catalyst watch' on Pearson shares

(Sharecast News) - Citi opened a 90-day "positive catalyst watch" on Pearson shares on Wednesday as it pointed to an attractive risk/reward.

"While we think new CEO Omar Abbosh's business and strategic update in July will formally signal a pivot from value to growth for Pearson, lengthening its duration as an investment, we don't see major earnings risk and note leverage-neutral valuation is toward decade lows," the bank said.

"Accordingly, we think overall risk/reward is attractive (base case 1170p but upside to 1550p on best case)."

The bank maintained its 'buy' rating on the shares.

At 0950 BST, the shares were up 1.9% at 959.20p.