Pearson "sell"

01/02/07 - Panmure Gordon & Co

LONDON, January 2 (newratings.com) - Analyst Alex DeGroote of Panmure Gordon & Co reiterates his "sell" rating on Pearson Plc (PSON-GBX). The target price is set to 690p.

In a research note published this morning, the analyst mentions that the recent alterations in the management team and acquisition activity weaken the arguments of the company being an asset play. The possibility of Pearson’s balance sheet leverage yielding cash returns is low, the analyst says. Pearson’s stock appears overvalued and the company is overly exposed to the US Education market, Panmure Gordon & Co adds.