Pearson PLC (LSE:PSON) may have had a soft quarter in Higher Education, but UBS thinks the real story is the acceleration of the market itself. After a flat Q3 last year, the analysts estimate US Higher Ed grew about 6% in Q3 2025, helped by a strong showing from McGraw Hill and steady progress at Cengage.
UBS has reaffirmed its 'buy' rating on Pearson PLC (LSE:PSON) and kept its price target at 1,460p, implying nearly 48% upside from the current share price of 988p. The broker came away from a fireside chat with chief executive Omar Abbosh feeling confident about the company's near-term performance and longer-term growth prospects.
Pearson's rating is upgraded to "Buy" after a strong Q3 and optimistic Q4 guidance. The Virtual Learning and Assessment & Qualifications segments outperformed, which translated into above-consensus results. PSO's Q4 outlook is favorable, with new contracts, Salesforce certification exclusivity, and ELS growth from a Cognizant partnership.
| Media Industry | Communication Services Sector | Omar Paul Abbosh CEO | NYSE Exchange | 705015105 CUSIP |
| GB Country | 17,116 Employees | 15 Aug 2025 Last Dividend | - Last Split | - IPO Date |
Pearson plc is a leading global provider of educational materials, assessments, and services, with a strong presence in the United Kingdom, the United States, Canada, Asia Pacific, Europe, and internationally. The company, founded in 1844 and based in London, the United Kingdom, operates through five key segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Workforce Skills, and Higher Education. Pearson is dedicated to offering innovative educational solutions that cater to a wide range of learning needs, from academic qualifications and online learning programs to workforce skills development and higher education courseware.