Goldman Sachs analyst George Tong has reiterated their bullish stance on SPGI stock, giving a Buy rating on April 18.
George Tong has given his Buy rating due to a combination of factors that signal robust financial health and promising growth prospects for S&P Global. The first quarter results for S&P Global surpassed expectations on revenue, EBITDA margins, and EPS, alongside an optimistic revision of the full-year guidance. The firm’s performance is bolstered by a strong demand for debt issuance, which is expected to remain solid due to an extensive pipeline of high-yield and leveraged loan refinancing, even though a deceleration in Ratings growth is anticipated later in the year.
Furthermore, SPGI’s diversified revenue streams provide a cushion against the uncertain macroeconomic climate, as evidenced by the impressive growth in non-Ratings areas, particularly the Indices and Commodity Insights segments. Although the Market Intelligence division faces cyclical challenges, it maintained robust growth and is expected to pick up momentum due to secular trends and increasing revenue synergies. Tong’s confidence is also rooted in the anticipation of continued revenue growth, both from Ratings and non-Ratings segments, potential margin improvements from operational efficiencies, and positive estimate revisions, all contributing to the upside potential for SPGI’s stock value.
In another report released on April 18, Bank of America Securities also reiterated a Buy rating on the stock with a $530.00 price target.
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S&P Global (SPGI) Company Description:
S&P Global, Inc. provides transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide. It operates through four segments: S&P Global Ratings, S&P Global Market Intelligence, S&P Global Platts and S&P Dow Jones Indices.
