Pearson price target lowered to 1,120 GBp from 1,170 GBp at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Pearson (PSO) to 1,120 GBp from 1,170 GBp and keeps an Equal Weight rating on the shares. The firm updated its model following FY25 results, reducing its FY26 and FY27 revenue forecasts by 1% and 2%, respectively, to reflect updated assumptions and minor changes at the sub-segment levels. The firm’s FY26 and FY27 adjusted operating profit estimates remain broadly unchanged, reflecting the higher than expected FY25 adjusted operating profit, the analyst tells investors in a research note.