RELX Shares Slide Further Despite Deutsche Bank Upgrade as AI Concerns Linger

RELX (LON: REL) shares have continued to retreat in the weeks following Deutsche Bank’s December upgrade, with the stock extending its selloff into late January despite analysts highlighting long-term strengths.

The shares closed Friday at 2,579p, down 14.6% year-to-date and 12% over the past week. Although so far on Monday, RELX is up around 1%.

Deutsche Bank lifted RELX to Buy on Dec. 9, arguing that the valuation pullback had created a more appealing entry point. 

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

The broker described the company as a resilient data- and technology-driven operator with solid organic revenue growth and improving margins. 

It also suggested that the downturn in the share price reflected market worries over artificial intelligence and weak updates from sector peers rather than a deterioration in RELX’s fundamentals.

Initially, the upgrade helped drive momentum. The stock climbed from about 2,995p on the day of the call to 3,210p by Jan. 12. But the recovery was short-lived. As wider market volatility intensified, RELX reversed.

More recently, Citi began coverage on Jan. 12 with a neutral view, setting a target of 3,325p. 

The bank flagged that uncertainty surrounding AI is likely to remain a feature of the investment narrative. Citi noted that it prefers companies where the AI-driven derating appears excessive and where the balance of risks is more favorable, signaling a more cautious stance on RELX at current levels.