London, June 13, 2026, 22:03 BST
- London Stock Exchange Group finished up 1.81% at 9,010p Friday, beating the FTSE 100, which added 1.63%.
- Investors are re-rating the stock as they take a new look at AI disruption risk, but London listings are still shaky after Flutter said it will quit the LSE.
- Traders are watching for two big events: the FCA’s decision on a UK equities “tape” set for July, and LSEG’s interim results on July 30. Reuters
London Stock Exchange Group plc closed higher Friday, with LSEG up 160p at 9,010p, a gain of 1.81%. The FTSE 100 rose 1.63% on the day. That’s after a rough year for the stock. LSEG is still off 18.72% over 12 months, based on Investors Chronicle data, even after Friday’s rally.
LSEG shares are getting support now as investors rethink the risk that AI could hit the group’s high-value data business. According to Reuters, the stock is up 27% since Elliott Management disclosed a stake in February, but it’s still off its 2025 highs. Deutsche Bank’s Benjamin Goy told Reuters, “It’s actually pretty cheap compared to other data companies.” UBS analyst Michael Werner called AI a “show me” story when it comes to generating revenue. Reuters
LSEG’s first-quarter numbers still give bulls something to stick around for. In its April Q1 trading update, the group reported total income excluding recoveries rose 9.8% on an organic constant-currency basis, an adjustment for currency and portfolio shifts. Data & Analytics was up 5.1%, FTSE Russell climbed 8.8%, Risk Intelligence increased 10.5%, and Markets jumped 15.5%. LSEG also finished £1.1 billion in share buybacks in Q1. The company said its £3 billion share buyback is on track through February 2027. A buyback is when a company buys its own shares, often helping boost earnings per share by cutting the share count.
The company is working to position itself as more than just a typical exchange operator. Davy’s profile points out that Refinitiv contributed to about two-thirds of LSEG’s revenue coming from data and analytics. That includes FTSE Russell and WM/Refinitiv benchmarks, data feeds, and terminals. This matters for valuation since recurring data and index sales are valued more highly than more cyclical listing-fee revenues.
FTSE Russell, the index arm of LSEG, said this week it plans to launch the Russell 9000 Global Index, a new benchmark that will include about 9,000 large companies in the U.S., developed markets outside the U.S., and emerging markets. Benchmarks like this are used by investors to track returns or to serve as the base for products such as exchange-traded funds. FTSE Russell says over $12 trillion is already benchmarked to the Russell U.S. Indexes. The company called the new global index a long-term chance for more product distribution, not an immediate boost to earnings.
Flutter Entertainment is moving forward with its decision to delist from the London Stock Exchange in August, sticking with its primary listing on the New York Stock Exchange. The company pointed to thin trading in London and higher costs as reasons for the move on Friday. LSEG faces some lost earnings from the departure, but its main data, analytics, index, and post-trade arms should limit the impact. Still, this doesn’t look good for London as a global listing spot.
Regulation is in focus, with Reuters saying LSEG is pushing back against the Financial Conduct Authority’s planned consolidated equities tape. The real-time feed would merge equity prices and trading from several venues. The FCA is set to finalise specifics in July. Expanded access to trading data could have an impact on how LSEG makes money from market data. Next up for the group is its July 30 interim results. Investors will be watching to see if first-quarter momentum, AI-driven data demand, and buybacks are lifting earnings for the long term.
LSEG shares trade at a P/E of 21.04 and yield 1.66%, according to Hargreaves Lansdown. At today’s price, the stock appears selectively attractive rather than low-risk. Investors Chronicle puts the median 12-month target at 12,000p, about 33% above the current 9,010p, and their latest consensus has no sell calls. The bullish argument has support, but there’s still exposure to AI monetisation concerns, UK market reform, and the risk of more companies moving their listings from London.
