Why LSEG Shares Dropped on Thursday

London Stock Exchange Group (LON: LSEG) was the biggest faller on the FTSE 100 on Thursday, June 18, tumbling 7% to 8,5338p.

The sell-off was triggered almost entirely by an analyst downgrade from Rothschild Redburn, which cut its rating on the stock from Buy to Neutral and slashed its price target from £120 to £104.

The note landed with force, driving shares well below their opening price of 8,790p and leaving the stock trading a long way off its 52-week high of 10,990p.

At the heart of Rothschild Redburn’s revised stance was a structural concern: the rapid rise of AI-driven workflows could increasingly disintermediate LSEG’s data aggregation and analytics businesses.

The firm estimated that around 30% of group EBITDA faces realistic downside pressure from this shift, as AI tools may allow clients to replicate or bypass the data products LSEG currently charges a premium for. The bank also trimmed its earnings growth forecasts, projecting only low-double-digit EPS expansion over the medium term.

The timing was notable. LSEG had reported strong Q1 2026 results in April — including 10% revenue growth and upgraded full-year guidance — yet the downgrade suggested that recent operational momentum may not be durable enough to justify the stock’s premium valuation.

The broader market offered little support. The FTSE 100 fell 1% as the Bank of England held rates at 3.75%, while hawkish signals from the US Federal Reserve dampened risk appetite across global equity markets.