Narrow-Moat Pearson Prints a Decent First Quarter

Narrow-moat Pearson has started the year well, with organic revenue rising by 5% year over year in the first quarter, despite still difficult market conditions. The company has reiterated its full-year guidance, which despite having only been issued at the beginning of March, we still take as a positive sign given the highly uncertain economic environment. We maintain our forecasts and GBX 870 fair value estimate. We believe the shares offer only modest upside from here.