BofA Boosts LSEG Price Objective After 'Strong' Q3, Upgraded FY26 Guidance

10:59 AM EDT, 10/23/2026 (MT Newswires) -- BofA Global Research increased its price objective for London Stock Exchange Group (LSEG.L) to 125 pounds sterling from 115 pounds, following the bourse operator's "strong" third-quarter results and upgraded 2026 guidance. "Crucially, LSEG delivered accelerating top-line growth led by Markets but also in subscription businesses which is on-track to step up in H226-2027. As a result, LSEG upgraded revenue growth (>8%), EBITDA margin expansion (100-120bps) and FCF guidance this year. The company also confirmed the acquisition of private credit data firm Octus and further buyback potential of GBP1.0-1.5bn in 2027," analysts said Friday, maintaining the stock's buy rating. "LSEG remains highly undervalued on 17x 2027 PE given 13% EPS CAGR in 2026-28, and now trades ~20% below European exchanges despite strongest EPS momentum and a ~25% discount to US data peers. We see strong potential for a catch-up as macrovolatility favours LSEG's resilient revenues in Markets and subscriptions." As such, the research firm lifted its adjusted EPS forecasts by 0.7% for 2026, 2% for 2027 and 3.4% for 2028. With regard to Octus, BofA said it is "constructive" on the deal and views it as a growth opportunity for LSEG, as it is supportive to the group's fixed income and data and analytics strategy.