BNP Paribas provide the following comments on professional publishing stocks "in the context of @2008 results season:"

They write the following:

 We remain Outperform on Pearson with a revised TP of 820p.
* We have contacted over 20 state department of education in the US to
survey state instructional materials budgets for 2008-2009. State budgets
finance around 50% of instructional material purchases, the remainder comes
mostly from local budges. In our sample, state budget allocation to
instructional material is down 3.6% for 2008-2009.
* However, we note three mitigating factors for Pearson Education. First,
our analysis of NYC school district spending between 2000-2005 suggests,
school districts may cut other spending to offset state budget constraints.
Secondly, Pearson has won market shares over competitors in Texas and
California this year. Thirdly, it was succesful in winning new contracts in
testing and professional development. We argue budget pressure are likely
to be offset by market share gains and new contract wins.
* H108 has seen inventory adjustments from US book retailers and
wholesellers. Wiley, Wolters Kluwer, Lagardere and some university press
have reported weaknesses in their trade and professional book publishing
business. We expect Penguin H108 revenue growth to have been impacted as
well.
*Overall, we cut EPS09 by 3% on lower Penguin and FT Group revenue growth
forecasts. We remain Outperform as current valuation levels offer an
attractive entry point in a stock benefiting from solid growth prospects
with little structural challenges to its business models as well as cost
efficiency opportunities through offshoring and integration benefits.

We remain Underperform on ThomsonReuters with a revised TP to 1200p
*We have cut EPS09 by 6% as we have reduced our Thomson Reuters Markets
revenue growth forecast from +1.5% to -1% in FY09-10.
* In addition to cyclical concerns the headcount-related revenues, we also
point to increased competitive pressure from exchanges in the market data
industry. Anecdotal evidence can be found in the new pricing structure of
NYSE-Euronext datafeeds.
* We expect Thomson-Reuters H2 outlook to reflect a slowdown in top line
growth driven by the phasing of slower growing products (print looseleafs
in Legal, PDR in Health), tougher comps in Markets and economic pressure.

We remain Neutral on Wolters Kluwer
* We expect management to depart from its 4% organic revenue growth
guidance and see a range of 3-4% as more likely. We believe this is now in
consensus.
* We estimate that 80% of regional and community banks in the US are
clients of Wolters Kluwer Financial Services division. Weaknesses in this
industry and possible mass-consolidation could prove a drag on the
company's ability to revert to 4-5% revenue growth.
* Valuation is attractive given the scope for cost efficiencies, but we
would stay away of the stock ahead of H108 results.


We have also published a comment on Informa (Outperform). We expect no
change in outlook at the H1 results. We also believe that private equity
are still looking for anchor investors in the Mezzaine tranche, a step now
required before securing bank financing. We still expect the deal to go
through within the next 6 weeks. On Eniro, we have cut TP from SEK40 to 30
but see scope for a short term rebound on the back of good Q2
profitability.