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 $10 to $470, a forward P/E of 32.4x our 2024 earnings estimate, a premium to the five-year historic average of 28.2x given higher recurring revenue and expectations for above-trend growth. We increase our 2023 EPS by $0.05 to $12.68 and raise 2024’s by $0.04 to $14.49. SPGI posted Q3 adjusted EPS of $3.21 vs. $2.93 a year ago, a $0.17 earnings beat. SPGI’s operating power was on full display in the quarter as accelerating growth was identified in each of the companies’ divisions. Leading the charge was Ratings (+20% Y/Y), which benefited from growth in transaction revenue as billed issuance increased significantly from prior depressed levels. Encouraging signs were also seen in Commodity Insights (+11%) with strong subscription growth, as well as Mobility (+10%) given continued new business growth in CARFAX. Looking forward, we expect results to benefit from margin expansion (+100 bps to 47.0% in Q3) given prudent expense management and fewer headwinds to debt issuance.