In-Line Results for LSEG; Higher Pricing in 2023 Suggests Traction in Trading and Banking Turnaround

We maintain our GBX 9,800 per-share fair value estimate for wide-moat London Stock Exchange Group after a set of in-line results. Total income excluding recoveries came in at GBP 7,428 million, matching consensus estimates of GBP 7,402 million as collected by the exchange group prior to the release. Alongside a solid underlying performance supported by the weaker British pound working in LSEG’s favor; confident guidance for 2023, further synergy achievements from the Refinitiv acquisition, and higher shareholder distributions were noteworthy. While all three exchange groups we cover trade at a discount currently, we believe LSEG offers the greatest value while also edging out its peers in competitive positioning as well as organic growth opportunities.