FTSE 100 index Technology stocks London Stock Exchange Group's (LSE:LSEG) has found its momentum again. After falling to nearly £80 in September, it rose again to £98 in the blink of an eye.

I think this may actually be the last chance for investors to snap it up for under £100. Because analysts in the City believe that the price will rise a lot in the next 12 months or so.

Why did the stock price fall?

There were two main reasons for the recent decline in LSEG shares. One is that the stock has fallen due to the “AI will eat software” narrative.

The other reason is that LSEG has been a bit slow in rolling out its own AI solutions, which were developed in partnership with the technology powerhouse. Microsoft. Investors were concerned that competitors might seize market share.

Investor fears are evaporating

Third-quarter earnings, published last week, appear to have eased some concerns here. That's because they were very durable.

The company not only posted 6.5% growth in its subscription data business, but also raised its earnings before interest, taxes, depreciation and amortization (EBITDA) margin guidance. In addition, it announced a £1 billion share buyback.

Regarding artificial intelligence, the company said that it has deepened its partnership with Microsoft. Today, LSEG data is integrated into Microsoft 365 Copilot and agent AI tools through Copilot Studio.

It also reminded investors that it announced in September that its AI-ready data is available on the Databricks data platform, allowing customers to quickly build and deploy AI agents with confidence in the accuracy and auditability of the data. entered into a similar partnership with Snowflake In October, enabling customers to embed LSEG data into AI agents powered by its Cortex AI tools.

On its third-quarter earnings call, CEO David Schwimmer poured cold water on the idea that artificial intelligence would hurt its business model. “For those who believe that AI models can grab so-called public data from the internet and replace us, this fundamentally ignores the non-reproducible nature of the vast majority of our data.He said.

Target price increases

Since publishing these results, Citi analysts have been scrambling to increase their share price targets for the stock. In recent days, analysts in JP Morgan They raised their price target to £133 from £128 while analysts were at Red blood cells He went for 134 pounds from 132 pounds.

These targets are 36% and 37% higher than the current stock price, respectively. In other words, analysts see the potential for significant gains in the medium term.

It is worth noting that although the share price has risen in recent weeks, the valuation still looks very reasonable. Currently, the stock is trading at a forward-looking price-to-earnings (P/E) ratio of 21 — which is low for a data company.

A blue-chip stock worthy of attention today

Given the company's momentum, and the bullish sentiment of City's analysts, I think Footsie stock is worth a watch today. AI and competition from competitors still present risks, but the overall risk-reward proposition is very compelling, in my view.