JPMorgan: LSEG Sell-off Due to Anthropic's New Tool Is "Irrational Behavior"
JPMorgan analysts stated that the recent decline in the share price of data service provider London Stock Exchange Group, following the launch of new AI tools by Anthropic, is an “irrational reaction.” According to the analysts, this drop was driven by negative market sentiment rather than company fundamentals. Influenced by this perspective, London Stock Exchange Group’s share price once rose by as much as 2.5%.
The analyst team, led by Enrico Borzoni, pointed out that the market sell-off reflects investors’ inability to distinguish between competition among software providers and data vendors, and the broader industry transformation brought about by generative AI—two fundamentally different concepts.
In their research report, the analyst team wrote that AI agents are not replacing data service providers, but rather collaborating with them.
Such collaborations require AI companies to sign partnership agreements with data service providers like London Stock Exchange Group and subscribe to related data services.
The team noted that the implied price-to-earnings ratio valuation for London Stock Exchange Group’s Data & Analytics division has dropped to around six times for 2026.
The team assigned an “overweight” rating to London Stock Exchange Group shares, setting the target price at 13,200 pence.
They also reiterated that, prior to the announcement of FY2025 results, the stock remains on the positive catalysts watch list.
Editor: Liu Mingliang
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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