07:03 AM EDT, 10/23/2026 (MT Newswires) -- RBC Capital Markets retained its outperform rating on London Stock Exchange Group (LSEG.L) following the bourse operator's third-quarter trading statement. "LSEG delivered an impressive 3Q26 trading update, which we believe contained good news in three areas: 1) better-than-expected revenue supporting upgraded guidance for top-line growth and free cash flow in FY26, 2) stronger-than-feared profit margins within the Octus acquisition, 3) signaled capacity for GBP1.0bn-GBP1.5bn share buy-backs in 2027, even after accounting for recently announced M&A," RBC said Friday. Analysts also updated their model for LSEG to account for its new 2026 revenue growth guidance of at least 8% on a constant currency basis. As such, the research firm's revenue projections rose 1% from 2026 to 2028, with its adjusted diluted EPS also up 1% "in all years following the update." Meanwhile, RBC said the "softness" in the company's stocks due to agentic artificial intelligence concerns is "overdone" amid the demand growth potential for the group's financial data offering. "The strong Q3 result also served as a reminder of the group's ability to benefit from bouts of market volatility, in particular with respect to uncertainty around interest rates. Given the current geopolitical backdrop, we see scope for this to act as a source of upside to our estimates for the remainder of 2026 and in to 2027," the research firm added. The stock has a price target of 13.60 pounds sterling at RBC.

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