Should I buy London Stock Exchange stock in 2025?

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At HelloSafe, our expert has been tracking the performance of the London Stock Exchange for over three years. Every month, over a million users in the UK trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by the London Stock Exchange.

The London Stock Exchange

What is the price of London Stock Exchange stock?

The price of London Stock Exchange stock is rising this week. The current share price stands at 10,860 GBX (£108.60), reflecting a daily increase of 0.51% and a 1.92% gain over the last seven days. With a market capitalisation of £57.16 billion and an average three-month daily volume of 1.33 million shares, the stock exhibits strong liquidity. London Stock Exchange trades at a P/E Ratio of 85.51, offers a dividend yield of 1.22%, and has a low beta of 0.37, indicating limited volatility compared to the wider market. These figures suggest attractive stability for investors seeking consistent performance.

Our full analysis of the London Stock Exchange stock

After reviewing London Stock Exchange’s latest financial results and performance over the past three years, integrated with a wide range of financial indicators, technical signals, market data, and competitor analysis via our proprietary algorithms, we offer a holistic assessment of this flagship stock. The evidence points to robust top-line trends, clear strategic progress, and resilient shareholder returns. So, why might London Stock Exchange stock once again become a strategic entry point into the global financial infrastructure and data technology sector in 2025?

Recent performance and market context

London Stock Exchange has delivered a notably strong performance despite a shifting macroeconomic backdrop. At the time of writing, the stock is trading at 10,860 GBX (£108.60), up 1.92% over the past week and 17.56% year-on-year, reflecting consistent investor confidence. While the price dipped slightly over six months (-4.9%), recent momentum is positive, particularly after Q1 2025 results exceeded expectations. A major catalyst was the acceleration in Data & Analytics and Risk Intelligence revenues, underscoring the importance of these segments in a more digitally driven world. Macroeconomic support comes from continued demand for financial market infrastructure and data transparency, with the UK’s post-Brexit regulatory framework supporting innovation and cross-border market activity. On the sector front, London Stock Exchange remains distinctly positioned versus global peers, such as Deutsche Börse and Euronext, by virtue of its data and technology focus.

Positive investor sentiment has also been buoyed by major strategic milestones: a landmark partnership with Microsoft, ongoing share buybacks (£245 million completed), and the acquisition of ICD enhancing Tradeweb’s capabilities. The consensus price target of 12,807 GBX (roughly +18% potential upside) and a buy recommendation from 19 analysts further highlight the market’s conviction.

Technical analysis

From a technical perspective, London Stock Exchange stock presents a robust buy-side setup. The RSI (14-day) stands at 70.37, suggesting bullish momentum and strong market demand, albeit approaching overbought territory. MACD (12,26) at 53.8 reinforces a bullish trend, indicating further upside potential in the short term. The share price remains above key moving averages—5, 20, 50, and 100-day—all giving buy signals, with only the long-term 200-day average suggesting mild caution. Overall, the moving average consensus rates the stock a “Strong Buy” (10 buy signals vs. 2 sell signals), pointing to short- and medium-term outperformance.

Key support is confirmed at 10,810 GBX, which has held repeatedly this week, while strong upward momentum could see resistance tested at 12,185 GBX, the 52-week high. These technical patterns suggest the shares are well positioned for a potential bullish continuation, especially if volume holds or accelerates post-recent corporate catalysts.

Fundamental analysis

Fundamentally, London Stock Exchange stands out as a premier play on digital financial infrastructure and data monetisation. Revenue growth has been persistent, with Q1 2025 reporting income up 8.7% (including M&A) and organic growth of 7.8%, driven by a diversified portfolio across Data & Analytics (+5.1% YoY), FTSE Russell indices (+9.6%), and Risk Intelligence (+10.7%). EBITDA margins are robust at 48.8%, supporting substantial free cash flow generation (£2.2 billion equity free cash flow, 2024). These figures validate the group’s ability to convert revenue growth into meaningful shareholder returns while reinvesting in high-growth initiatives.

Valuation is currently at a P/E of 85.51 (trailing) and 26.6 (forward), reflecting the group’s premium market position and income visibility; the PEG and P/S ratios are similarly justified by high revenue retention, sticky recurring revenue, and the potential for margin expansion. The price-to-book ratio of 2.47 and enterprise value/EBITDA at 15.86 are in line with sector leaders operating in high-barrier industries.

London Stock Exchange’s structural strengths underpin this premium: its leadership in global financial market infrastructure, early-mover advantage in cloud-based data analytics (Microsoft partnership), and ongoing product innovation across sustainable investing, regulatory analytics, and digital assets. The group’s powerful brand, resilient client base, and global reach reinforce its long-term value.

Volume and liquidity

Trading activity in London Stock Exchange shares is consistently high, with a three-month average daily volume of 1.33 million shares. This deep liquidity supports efficient execution for both retail and institutional investors and reflects sustained market interest. The sizeable float also facilitates dynamic price discovery without undue volatility, providing confidence in market pricing. Such volume is a tangible measure of ongoing investor confidence and underpins resilient valuations, especially for investors seeking reliable entry and exit points. The current strong demand around recent technical supports further emphasises robust interest.

Catalysts and positive outlook

Several forward-looking catalysts add tangible momentum to the investment case. Strategically, the ongoing rollout of cloud-based analytics and data products in partnership with Microsoft is expected to unlock substantial incremental value, while the recent Tradeweb acquisition (via ICD) further enhances the group’s position in electronic trading and fixed income solutions. The buyback programme, with over £245 million already executed this year, signals management’s confidence and supports share price resilience.

• The transformative integration of Microsoft-powered solutions and cloud platforms, targeting increased client stickiness and upselling opportunities.
• Anticipated continuing strong free cash flow, with guidance for equity free cash flow of at least £2.4 billion in 2025.
• Healthy dividend growth potential, with a forward yield of 1.22% and a recent 130 pence forward dividend per share, reinforcing shareholder alignment.
• Sector-wide supportive trends: the global drive for more transparent, data-driven financial infrastructure, increasing demand for ESG-compliant investment solutions, and digital transformation across asset management.
• Clear regulatory support for UK-based financial market infrastructure, providing a stable backdrop for long-term planning.

The group’s financial strength—solid balance sheet, operating cash flows of £3.396 billion (2024), and EBITDA margin of nearly 49%—affords it resilience and flexibility to pursue further growth, acquisitions, and shareholder returns, while managing any sectoral volatility with discipline.

Investment strategies

• Short-term: Attractive entry potential following recent technical consolidation just above key support, ahead of expected news flow from Microsoft collaborations.
• Medium-term: Ongoing momentum from strong financial results, high analyst conviction, and accelerating cloud analytics adoption may drive price appreciation toward consensus targets.
• Long-term: The group’s deeply embedded role in global finance, leadership in financial data, and proven adaptability to new technology all position it as a secular winner. Market share gains, expanding addressable markets, and increasing demand for financial infrastructure could underpin multi-year outperformance.

For investors seeking a blend of defensive resilience and structural growth, the current valuation seems to represent an excellent opportunity—especially when considering both new product launches and a reinforced dividend.

Is it the right time to buy London Stock Exchange?

Bringing all these points together, London Stock Exchange shares demonstrate a compelling combination of recurring revenue, high growth potential, strong cash generation, and market-leading innovation. The stock’s premium valuation is justified by its dominant position, dynamic response to the global digital shift, and strengthened partnerships, notably the Microsoft alliance that continues to unlock new revenue streams. Bullish technical indicators, sustained market volume, and clear catalysts for further growth all signal that the stock may be entering a new bullish phase in 2025. In a market searching for quality, stability, and growth, London Stock Exchange seems to represent an excellent opportunity for investors looking to capitalise on the next chapter in financial technology and market infrastructure. Now may well be the time to take a closer look at this sector leader and consider positioning for future outperformance.

How to buy London Stock Exchange stock?

Buying London Stock Exchange shares online is both straightforward and secure when you use a regulated broker. You can choose between two main methods: traditional spot buying (purchasing actual shares) or trading via Contracts for Difference (CFDs) to speculate on price movements. Both approaches grant access to the leading UK market, often within minutes after opening and funding your account. To help you pick the right partner, you’ll find a broker comparison table further down the page.

Spot buying

A cash purchase means you buy real London Stock Exchange shares in your name, with ownership rights such as dividends. Most UK brokers charge a fixed commission per transaction, typically around £5 to £10, plus any applicable stamp duty.

Share Investment: Gain Scenario Example

For example, if the London Stock Exchange share price is £108.60, you can buy around 9 shares with a £1,000 stake, including a brokerage fee of about £5.

✔️ Gain scenario: If the share price rises by 10%, your shares are now worth £1,100.

Result: +£100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFDs (Contracts for Difference) allow you to trade on London Stock Exchange shares without owning them directly. This method enables leverage, meaning you can amplify your exposure, but also carries higher risk. Fees typically include the spread (the difference between buy and sell prices) and overnight financing if you keep positions open beyond the trading day.

Example of a CFD Gain Scenario

Example: You open a CFD position on London Stock Exchange shares with 5x leverage and a £1,000 deposit.

This means you control £5,000 worth of shares.

✔️ Gain scenario:

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +£400 gain, based on your £1,000 outlay (excluding fees).

Final advice

Before investing, always compare brokers’ fees and terms to find the best fit for your needs. The ideal method—spot purchase for long-term investors, CFDs for active traders—depends on your objectives and risk appetite. For more details, find our comprehensive broker comparison further down this page.

Our 7 tips for buying London Stock Exchange stock

The latest news about London Stock Exchange

London Stock Exchange shares achieve a weekly gain of nearly 2%, outperforming the UK indices. The stock closed at 10,860 GBX on 3 July 2025, up 1.92% over the week, reflecting solid investor confidence amidst a period of relative stability and amid strong trading volumes. This performance stands out given the broader FTSE 100’s subdued movement and underlines LSEG’s resilience in the UK financial landscape.

Technical indicators highlight a strong bullish momentum for London Stock Exchange shares. The latest technical readings show the RSI at 70.37, denoting a clear buy signal as the stock edges toward overbought territory. Complemented by a positive MACD and ten buy signals on moving averages, LSEG’s current structure provides a constructive technical outlook highly relevant for strategic UK-based investors.

The company’s recent results confirm robust growth in key revenue divisions in the UK. In Q1 2025, LSEG delivered total income growth of 8.7% (7.8% organic), with standout performances in FTSE Russell (+9.6%) and Markets (+10.7%), both cornerstones for local and international trading and investing activity. This reinforces the company’s pivotal role in the UK’s financial ecosystem and underpins further upside potential in the domestic market.

Ongoing share buyback and prudent capital allocation strengthen value for UK shareholders. As of 30 April 2025, LSEG had repurchased £245 million of its £500 million buyback programme, directly benefiting British retail and institutional investors by supporting share price appreciation and delivering efficient capital returns in line with sector best practices.

Analyst consensus in the UK signals confidence, forecasting upside for London Stock Exchange shares. The latest survey of UK financial analysts assigns a strong buy rating (mean recommendation of 1.79) and targets a 12-month price objective of 12,807 GBX, suggesting approximately 30% further upside, signalling the market’s positive outlook on LSEG as a robust growth and income vehicle in the British financial sector.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.