LSEG shares slide 4%, as Redburn warns AI threatens core earnings

London Stock Exchange Group (LSEG) shares fell more than 4% following a rating downgrade by Rothschild & Co Redburn.

Redburn lowered the stock to neutral from buy and reduced the price target from £120 to £104. Analysts warn that artificial intelligence could disrupt LSEG’s Data & Analytics business.

AI-driven tools threaten to disintermediate traditional data aggregation and workflow products. Redburn estimates that approximately 30% of LSEG earnings face pressure from this technological shift.

Terminals and non-real-time data segments are most exposed to commoditization. Real-time data and post-trade infrastructure remain protected from these disruptions.