The AI risk facing London Stock Exchange Group PLC’s (LSE:LSEG) business model is “limited”, that’s according to analysts at UBS who have repeated a ‘Buy’ rating and pointed to nearly 30% potential upside.
Moreover, UBS analysts reckon last week’s AI-driven wobble has opened an “attractive entry point” into the market infrastructure and data group.
The Swiss bank’s Buy rating comes with a 11,700p price, versus a prevailing market price of around 9,126p.
Such bullishness comes despite a bout of weakness in the market, after Anthropic and Perplexity launched financial services-focused AI agents, a development that rekindled investor concerns over whether artificial intelligence could disrupt data providers. Indeed, UBS said LSEG shares underperformed by 6% last week, though the stock remains up 20% since the end of February and 29% relative to the market over the same period.
“We view the recent weakness in LSEG’s share price as an attractive entry point for investors,” the bank said in the note. Its analysts acknowledged that LSEG is unlikely to be “completely immune” from future AI waves, but argued the risk is narrower than the market reaction implies.
In a downside scenario, UBS sees potential disruption affecting only a low-to-mid single-digit portion of group revenues, mainly from buyside users of LSEG’s desktop products.
Meanwhile, the bank also expects AI to create fresh opportunities through LSEG’s MCP server, which provides structured data to third-party AI agents.
The bank expects LSEG to begin monetising the product in 2027, with the next catalyst likely to come at the company’s H1 2026 results on 30 July, when management is expected to set out the commercial framework.
“We see limited risk of LSEG’s businesses being displaced by AI,” it added. “While AI will certainly have an impact on data providers, we think the impact will be a net positive for LSEG.”