Citi opens ‘positive catalyst watch’ on Pearson into strategic update

Citi opened a “90-day positive catalyst watch” on shares of Pearson. New CEO Omar Abbosh’s business and strategic update in July will formally signal a pivot from value to growth for Pearson, lengthening its duration as an investment, the analyst tells investors in a research note. The firm does not see major earnings risk and notes the company’s “leverage-neutral valuation is toward decade lows.” Accordingly, it think the stock’s overall risk/reward is attractive.