Kepler Cheuvreux added Relx to its Sector Most Preferred List, reiterating a “buy” rating and a 3,905 pence target price. The broker argues the stock’s recent derating on fears of AI disruption is overdone, despite a sharp 2025 valuation pullback that was less severe than peer Wolters Kluwer.

The analyst raised organic revenue growth forecasts to 6.1% for 2026 and 6.2% for 2027, citing reduced U.S. federal funding risk in the Scientific, Technical & Medical (STM) division. Margin estimates were also lifted to 35% for 2026, reflecting a stronger outlook for STM and Exhibitions.

Investor concern has centred on potential AI disruption in Relx’s Legal and STM divisions. However, Kepler highlighted tangible gains from generative AI in Legal, where analytics now account for about 60% of revenues, up from 20% in 2021, with like-for-like growth accelerating to around 8%.

AI-driven upgrades have led to repeated double-digit increases in average client spend. Unit costs are falling, with cost per LLM transaction down 24% year-on-year. In STM, Relx is preparing to launch LeapSpace, an end-to-end AI-powered researcher platform, in the first quarter of 2026.