LSEG Posts 2021 Ahead of Our Expectations; Trading and Banking Progress Continues; FVE Increased

Wide-moat London Stock Exchange Group, or LSEG, reported adjusted earnings per share of 287 pence versus the 258 pence we had been expecting for full-year 2021. Performance was strong across the board, in particular with volatility around omicron and interest-rate expectations yielding better-than-expected results for the group. Progress was also on display in its data and analytics business, which we believe is encouraging. Overall, LSEG has delivered on its 2021 targets and already shows good momentum into this year. We have digested these good results and rolled our model one year forward, raising our fair value estimate to GBX 9,800 from GBX 9,200 per share. We believe shares in LSEG are attractive and investors looking for a wide-moat business with an Exemplary capital allocation rating should not look past this opportunity.