RELX Price Correction Seen as Buying Opportunity Despite AI Concerns

RELX PLC's share price has pulled back due to concerns about AI, but the company remains deserving of a "Buy" in my opinion. The stock is currently trading at a discount to its listed comparable, making it a good entry point.

RELX PLC (NYSE: RELX) has experienced a significant pullback in its share price due to concerns surrounding artificial intelligence (AI) and potential competition from AI startups like OpenEvidence. Despite these worries, RELX remains a strong candidate for investment, offering a compelling entry point at a substantial discount to its listed comparables.

The stock has fallen 13% since the beginning of July 2025, while the S&P500 has risen by 8% during the same period RELX: Price Correction Represents A Buying Opportunity^[1]. Investors are particularly concerned about the threat posed by AI startups to Wolters Kluwer's healthcare data platform, UpToDate, and Gartner's Business & Technology Insights segment. However, these concerns may be overblown.

RELX's legal business, LexisNexis, is distinct from competitors like Gartner and Wolters Kluwer. While AI can generate in-depth corporate research reports, the legal industry requires tools that attribute sources, verify facts, and record workflows, which LexisNexis provides. Moreover, the competitive dynamics differ; while OpenEvidence challenges Wolters Kluwer, LexisNexis primarily serves legal professionals as a database.

RELX is also proactively addressing AI disruption. The company has formed strategic alliances and invested in AI technologies, integrating generative AI into its legal solutions. RELX's legal unit saw organic revenue growth accelerate to 9% in the first half of 2025, driven by AI-enabled innovations RELX: Price Correction Represents A Buying Opportunity^[1].

Despite these positive developments, RELX faces potential challenges. The company's top-line growth might slow if new entrants emerge, and it could experience short-term hits to profitability due to AI-related investments. However, these risks are manageable, and RELX's valuation has become more appealing after the unwarranted disruption-related concerns.

RELX's consensus next 12 months' P/E has de-rated from 34 times to 26x, presenting a significant upside potential. Even if RELX just returns to its April 2025 valuation level, the capital appreciation could be 31% RELX: Price Correction Represents A Buying Opportunity^[1].

Institutional investors, such as Belpointe Asset Management LLC, have also recognized the value in RELX. Belpointe acquired a new stake in RELX in the first quarter, purchasing 9,110 shares valued at approximately $459,000 Belpointe Asset Management LLC Buys New Position in RELX PLC $RELX^[2]. Other institutional investors, including ABC Arbitrage SA, Charles Schwab Investment Management Inc., and Goldman Sachs Group Inc., have also increased their holdings in RELX, further validating its investment potential.

In conclusion, while RELX faces AI-related challenges, its strong position in the legal database market and proactive approach to technological changes make it a compelling investment opportunity. The current discount to its listed comparables and strong institutional support make RELX PLC a "Buy" in the current market conditions.