Reed Elsevier (REL) delivered solid first-half results that were on par with our expectations. Our fair value estimate remains the same and we believe the shares are fairly valued at the current price. Based on the results and management's outlook, we still project low-single-digit growth for the full year for this business services conglomerate.
The company generated 1% organic growth with positive trends in each of its business lines when the biennial exhibitions are excluded. The Elsevier journals segment (33% of overall sales) reported modest 2% underlying growth, with science and technology's 4% growth outpacing flat top-line results for health sciences. Management noted that the funding environment continues to be mixed with variations between customers and geography. We continue to believe the journals business is Reed Elsevier's crown jewel, given its strong competitive position.
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