Resilience Is Key for Narrow-Moat RELX

Narrow-moat RELX’s first-half results reflect a decent performance, in the face of mixed fortunes for the business. Revenue rose by 4% on a constant currency basis, while operating margin rose by 400 basis points to 25.3% on an actual basis. While we continue to monitor developments, particularly in the exhibitions business, we believe progress so far this year has been closely tracking our expectations. As such, we do not expect to make any material changes to our forecasts at this time, nor to our GBX 1,615 fair value estimate. We believe the shares are moderately overvalued.