Wolters Kluwer shares rise after JPM upgrade on AI confidence, valuation
BUZZ-Wolters Kluwer shares rise after JPM upgrade on AI confidence, valuation July 9 (Reuters) - ** Shares of Wolters Kluwer WLSNc.AS rise nearly 7% after J.P. Morgan ups rating on the Netherlands-based information services provider to "overweight" from "neutral"
** The broker cites the group's compelling valuation, AI-driven acceleration into 2027 and potential leveraged buyout (LBO) upside
** "WK’s investment, acquisitions and rollout of new products have increased our confidence in its AI moat and longer-term growth," it says
** JPM notes the group trades at about 9 times expected 2027 earnings, representing a 40% valuation discount to RELX REL.L, and a 60% discount to U.S. peers
** In its view, the attractive valuation, recurring revenue and strong cash generation could sound appealing to private equity
** The broker's LBO model implies a base internal rate of return of about 17% (assuming a 30% premium), rising to 23% if Tax assets were sold at a premium
** Out of 18 analysts that cover Wolters Kluwer NV, 13 rate the stock "strong buy" or "buy," three rate it "hold" and two rate the stock "strong sell" or "sell" - LSEG data
(Reporting by Ronan Corcoran in Gdańsk)