RELX PLC (LSE:REL) is beginning to silence its critics by demonstrating that artificial intelligence could accelerate growth rather than undermine its core business model.
Following strong first-half results from the FTSE 100 data and publishing giant, Deutsche Bank retained its buy recommendation and lifted its price target to 3,100p from 3,050p.
UBS also reiterated its buy rating with a 3,600p price target, implying almost 47% upside from the most recent closing price of 2,451p.
RELX has been among several data and software publishers battered by investor concerns that AI could erode demand for their subscription products and specialist tools.
UBS analyst Jo Barnet-Lamb said the results demonstrated “AI-led organic acceleration”, with growth at the Scientific, Technical and Medical division rising to 6% and Legal advancing to 10%.
Adoption of products including LeapSpace and Lexis+ with Protégé continues to climb, supporting what UBS described as a “multi-year growth and upsell opportunity” for the business.
Group organic revenue increased 7% while margins expanded by 70 basis points, well ahead of the modest 20 basis points that analysts had been forecasting ahead of the results.
Deutsche Bank’s Steve Liechti said the rapid rollout of new products and increasing customer usage suggested RELX was “only at the beginning of the growth/upside journey”.
Liechti argued that “AI worries look overplayed” because rivals deploying large language models cannot easily access or replicate RELX’s proprietary content, data infrastructure, and embedded tools.
Barnet-Lamb agreed that structural disruption remained unlikely, pointing out that the first-half figures showed “no evidence of AI-related disruption” across the group’s key divisions.
However, Barnet-Lamb cautioned that the broader “AI overhang” is still expected to weigh on the shares in the near term, limiting any immediate re-rating of the stock.
RELX shares currently trade at 17.6 times forecast 2026 earnings, a significant discount to the company’s five-year average multiple of 24.1 times, the UBS analyst noted.
Barnet-Lamb described the situation as “a re-rating story” that requires continued delivery from management to close the widening gap between strong earnings momentum and lagging share-price performance.