Pearson PLC
PSON: XLON (GBR)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| LOCK|&bg | LOCK|RN | LOCK|%#^?&^> |
Narrow-Moat Pearson Finds an Admirer
The news of a rejected bid by private equity giant Apollo sent narrow-moat Pearson shares soaring in afternoon trading on March 11, closing more than 20% up on the day. The offer, at GBX 854 per share represents levels not seen by investors since last summer, and correlates almost exactly with our GBX 870 fair value estimate, but undervalues the business, according to management.
