RELX Stock: Morningstar Says Shares Are Deeply Undervalued After Earnings

What RELX's Latest Earnings Update Changed

RELX's latest earnings update gave Morningstar's analysts enough to restate a call that has been building for a while: the shares are trading well below what they think the underlying business is worth. Morningstar's note frames the results as confirmation that RELX's four divisions, legal research through LexisNexis, scientific publishing through Elsevier, risk and fraud analytics, and its exhibitions arm, are all continuing to add revenue and profit at a pace consistent with the firm's long run growth targets, rather than showing any sign of a slowdown.

A fair value gap like this usually comes from two things pulling in opposite directions: steady, unspectacular growth in the actual numbers, and a market multiple that has been pulled down by worries unrelated to that growth, in RELX's case the fear that AI tools could eventually erode demand for its subscription databases. When an analyst says shares are deeply undervalued after an earnings print, it typically means the print did nothing to justify the discount the market has been applying.

Why RELX Stock Is in Focus Over Its Valuation

RELX sits in an unusual spot among UK blue chips: a business with recurring, contract backed revenue that would normally command a premium rating, but trading at a level Morningstar considers cheap relative to its own estimate of intrinsic value. That gap is the story here. It is not that RELX had a blowout quarter, it is that a well followed research house is telling investors the market has not been pricing the company on its fundamentals.

For readers trying to work out why a seemingly stable, cash generative business keeps coming up in undervaluation calls, the answer traces back to sentiment rather than the numbers themselves, the same AI disruption narrative that has shadowed the stock for the past couple of years and shows up repeatedly in analyst commentary on the shares.

Which Stocks, and Why

RELX is the sole focus here, as this is a company specific valuation call rather than a sector wide theme. Nothing in Morningstar's update points to read across for other London listed information or media names.

What to Watch

Watch whether the valuation gap Morningstar describes actually narrows in the months ahead, which would require either the shares re rating upward or Morningstar revising its fair value estimate down. Also worth tracking is whether other analysts covering RELX converge on a similar undervaluation view or push back the way Deutsche Bank has done in response to AI worries, and whether RELX's next full update gives investors a cleaner read across all four divisions rather than a single quarter's snapshot.