What a difference a takeover makes. Analysts revised their verdict on Financial Times parent Pearson (NYSE:PSO) today, with the company likely to face tough competition from the combination of both News Corp-Dow Jones (NYSE: NWS, NYSE, DJ) and Reuters-Thomson (Nasdaq: RTRSY, NYSE: TOC). As Forbes reports, Deutsche Bank downgraded its advice from “buy” to “hold” and revised down its target price forecast, but it upgraded Reuters the other way around, adding a “buy” for the news agency’s new Canadian bedfellow, too. Deutsche Bank reckons a slowing US economy will hit education budgets and, therefore, Pearson’s education publishing business; Forbes: “As for the Financial Times, the success of Rupert Murdoch in acquiring Dow Jones meant Pearson faced increased competition with little chance of finding a buyer for its operations.” Separately, Deutsche Bank was glowing on the Reuters-Thomson combo: “TR ticks the two key boxes for publisher stock outperformance - costs and balance sheet” (via StreetInsider). The stars are aligning in the business information sector, while Pearson struggles to reconcile its operations (ie. still no finality on the Les Echos sale).

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