Buy Recommendation for RELX plc Driven by AI Advancements and Strategic Diversification

Analyst David Amiras from Bank of America Securities reiterated a Buy rating on RELX plc (RLXXF – Research Report) and keeping the price target at p4,900.00.

David Amiras has given his Buy rating due to a combination of factors including the promising growth outlook of RELX plc’s Legal division, which is significantly driven by advancements in AI technology. The next-generation Protégé, part of the Lexis+ AI suite, is gaining traction and is expected to enhance revenue growth through its successful market reception. The Legal division is benefiting from a substantial user base, trusted brand heritage, and AI tools that provide significant ROI for law firms, indicating a continued positive trajectory.
Additionally, Amiras remains optimistic about the Scientific, Technical & Medical (STM) segment despite some policy uncertainties in the US. RELX’s geographic diversification and low reliance on US federal funding, combined with a strong history of growth and secular trends in academic publishing, mitigate potential risks. The current valuation of RELX, which is at a discount compared to its peers, and the anticipation of positive catalysts from upcoming results, further support the Buy recommendation.

Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RLXXF in relation to earlier this year.