European media stocks offer attractive valuations after 'overdone' AI-driven selloff - Citi

Relx

12/01/2026 08:28

** Citi says fear rather than fundamentals drove European media stocks' 30% underperformance in the AI-driven selloff last year

** Citi deems 2025 de-rating of 23% on average as "overdone", bringing attractive risk/reward profiles as EPS forecasts fell only by 9%

** The broker expects product development spending to come increasingly in focus, over margins, as a proxy for innovation and defence against AI-driven competition threats

**  Exhibitions companies are relatively best positioned for AI transition, followed by publishers, then agencies, it adds

** Citi initiates coverage at "buy" of British education firm Pearson PSON.L, French ad agency Publicis PUBP.PA and Dutch IT provider Wolters Kluwer WLSNc.AS, the last one being its top pick

** At "neutral", it starts British companies Informa INF.L, Relx REL.L and WPP WPP.L

(Reporting by Lucie Barbier)

((Email: lucie.barbier@thomsonreuters.com))