London, January 24, 2026, 08:15 GMT — Market closed
London-listed Relx (REL.L) is under the spotlight heading into next week after Kepler Cheuvreux put the information and analytics group on its Sector Most Preferred list. The broker called recent valuation worries over AI disruption exaggerated. Maintaining a “buy” rating, Kepler set a 3,905-pence target price and noted that Relx’s 2025 pullback was milder than that of Dutch rival Wolters Kluwer. 1
The timing is crucial. Investors are wrestling with whether generative AI will replace paid research and workflow tools or act as a feature that boosts switching costs and justifies higher prices. For subscription-based companies, this debate influences valuation multiples as much as actual earnings do.
In a Friday note, Kepler analyst Conor O’Shea said the European media sector entered 2026 battered, mainly due to valuation “derating” — meaning investors are paying less per unit of profit — rather than broad cuts to earnings forecasts. He called Relx “more a beneficiary of GenAI than vulnerable, despite the recent de-rating.” 2
Relx shares closed Friday down 0.14% at 2,921 pence. The stock has slipped for five consecutive sessions, losing roughly 3% since Monday’s close, according to recent prices. 3
The company continued its stock buyback. On Jan. 23, Relx reported purchasing 325,221 shares at a volume-weighted average price of 2,913.3865 pence. These will be held as treasury shares — stock bought back and retained by the issuer. Since Jan. 2, the filing revealed, it has repurchased a total of 4,981,756 shares. 4
Kepler boosted its organic revenue growth outlook — excluding currency and deal impacts — to 6.1% for 2026 and 6.2% for 2027, while also revising margins up to 35% and 34.9%, respectively. It highlighted upcoming product launches like Protégé General AI in Legal and the planned LeapSpace platform in Scientific, Technical & Medical, both set for Q1. The firm also noted a 24% drop in cost per large-language-model transaction compared to last year. 5
The risk scenario remains. Should AI tools reduce switching costs or steer legal and science users toward more affordable, open options, renewal prices might face downward pressure. The argument over “who owns discovery” would flare up once more. Rising computing expenses would also challenge the notion that AI can boost growth without squeezing margins.
Relx is set to report its full-year results for 2025 on Feb. 12. Investors will watch closely for updates to guidance, any buyback news, and initial evidence that AI offerings are boosting recurring revenue. 6
