Relx Sentiment Mixed as Citi Initiates Coverage of Shares at Neutral

Relx shares are facing a somewhat uncertain trajectory following the initiation of coverage by Citi, which assigned a ‘Neutral' rating and a price target of 3,325 GBp. The assessment arrives amidst ongoing market discussions surrounding the potential impact of artificial intelligence (AI) on various sectors.

The media group's stock performance is now being closely watched as markets digest Citi's perspective alongside a series of contrasting evaluations from other prominent financial institutions. While Citi's analysts express caution, others suggest a more optimistic outlook, creating a complex scenario for those tracking RELX's market position.

JPMorgan recently reaffirmed its ‘Overweight' rating for RELX, signaling continued confidence in the company's ability to perform. 

Deutsche Bank previously upgraded RELX to ‘Buy', viewing the recent stock decline as a favorable entry point for investors. The bank cited RELX's strong financial metrics and growth potential as key drivers for its revised assessment. Following suit, BofA Securities raised its price target for RELX to 4700 from 4300, maintaining a ‘Buy' rating and highlighting the company as one of its “25 stocks for 2025”. The firm cited above-consensus growth in key divisions and RELX's positioning as a beneficiary of generative AI as primary catalysts for the increased target. Barclays also joined the bullish sentiment, upgrading RELX to ‘Overweight', reflecting increased confidence in the company's market position and growth trajectory.

Adding to the positive signals, RELX announced a substantial £1.5 billion share buyback program for 2025, exceeding market expectations. This announcement, made in conjunction with the release of full-year 2024 results that were broadly in line with expectations, underscores the company's robust financial health and commitment to returning value to shareholders. Such a move typically bolsters investor confidence and can positively influence the stock's performance in the near term.

Price Targets

The mixed signals from analyst ratings, alongside a significant share buyback, could lead to a period of price discovery for RELX shares as the market weighs the potential impacts of AI and the company's overall financial strength.