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Altantic Equities analyst Simon Clinch upgraded S&P Global (NYSE:SPKE) to Overweight on Monday, partly due to confidence in the company’s acquisition of IHS Markit and as a result the company’s diversification.
“We like the company’s diversified, high-quality business model, which is suitable for self-help needs from revenue and cost synergies, attractive payback program, and long-term growth, and believes it offers attractive upside from current levels with downside resilience in the short term,” Clinch wrote in a note. Note to customers.
Analyst reiterates Moody’s Neutral rating (MCO) and MSCI (MSCI).
Clinch points out that S&P Global (SPKE) Recurring sales of sales exceed 70% of total sales, making the company less susceptible to significant cyclical fluctuations. In addition, he has been impressed with the way the management has run over the years, especially the CFO’s “precise focus on managing the cost basis”.
In addition, the company’s return commitments are also relevant to the company’s shareholders. It is on track to buy back $12 billion of stock this year and is committed to returning more than 85% of its free cash flow to shareholders in the form of dividends and future buybacks.
SPGI share up 1.0% in trading Monday morning.
Investor Day on December 1 could provide a catalyst for stocks as it offers long-term guidance and updates to capital allocation plans, Clinch said.
Overweight ratings clash with SA Rate the quantity of Sell and consistent with the average Wall Street Buy Rating.
At the end of October, S&P Global (SPKE) Q3 earnings beat consensus even as low debt issuance hurts its ratings revenue.
See why SA contributor Normad Capital looks at S&P Global’s (SPKE) The outlook is mitigated from further guidance cuts
