CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We decrease our 12-month target price by $20 to $510, a forward P/E of 31.2x our 2025 earnings estimate, a premium to the peer average of 23.3x given higher recurring revenue and expectations for outsized growth. We increase our 2024 EPS by $0.16 to $14.69 and reduce 2025’s by $0.18 to $16.35. SPGI posted Q1 adjusted EPS of $4.01 vs. $3.15 a year ago, a $0.35 earnings beat. It was an excellent quarter for SPGI as revenue growth accelerated to 10% from 7% in the previous quarter. Leading the way was the Ratings segment (+29% Y/Y) as favorable market conditions led to a 45% surge in billed issuance. Although management improved its 2024 Ratings guidance by 100 bps to 7%-9%, we continue to see an upside as transaction-oriented revenue rebounds and nontransaction-oriented revenue continues its steady march upwards (8% growth in Q1). Market Intelligence rose 7% on growth in Data & Advisory Solutions and Enterprise Solutions. Given the strong quarter, SPGI’s operating margin jumped 360 bps to 49.8%.