Morgan Stanley analyst Luke Holbrook downgraded Pearson (PSO) to Equal Weight from Overweight with a price target of 1,300 GBp, up from 1,200 GBp. The share price rally “is deserved,” but leaves the stock fairly valued, the analyst tells investors in a research note. The firm says further upside relies on higher margins in Pearson’s higher educations and assessments segments. It thinks shares will “take a breather” and views Springer Nature as its preferred relative play.
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