Pearson: May be tested by McGraw Hill-Cengage deal - Berenberg

Cengage Learning Holdings II

06/06/2019 07:13

** Education company Pearson  PSON.L  is facing increased
threat from the proposed merger of McGraw Hill and Cengage
 CNGO.PK , Berenberg analysts say
    ** "If we assume that the McGraw Hill/Cengage merger makes
it past antitrust, then in the medium to long term, the
combination could prove a more potent threat."
    ** Brokerage says its data scrape shows Pearson losing share
in community colleges in the U.S., which accounts for about 2/3
of revenues
    ** Liberum analysts had also last month warned of the impact
to PSON from a possible deal  urn:newsml:reuters.com:*:nL3N22D1F4
    ** Berenberg reiterates "sell" rating; currently nine of 17
brokerages have bearish view on stock
    ** 6 analysts rate PSON "hold", 2 "buy"; median PT 817.50p
    ** Up to Wednesday's close, stock is down 17.3% this year

 (Reporting by Shashwat Awasthi in Bengaluru)
 ((shashwat.awasthi.thomsonreuters.com@reuters.net))