Piper Jaffray Cuts Price Target on McGraw Hill Financial (MHFI) to $114 Following 2Q EPS Beat

Piper Jaffray maintains an Overweight rating on McGraw Hill Financial (NYSE: MHFI), and cut the price target to $114.00 (from $117.00), following 2Q earnings. EPS of $1.21 beat consensus estimates on $1.13.

Despite the short-term dilution, Analyst Peter Appert likes the strategic fit of SNL and believes it could be a potentially significant contributor to earnings growth.

Appert commented, "A meaningful 2Q earnings beat was overshadowed by investor concerns over dilution from the pending acquisition of SNL Financial. While MHFI is paying a rich price for SNL, we think the transaction makes strategic sense and can be additive to long-term earnings growth. We continue to see meaningful potential upside in the shares, with strong 2015 margin performance reinforcing our confidence in the prospect of $6.50/ share of earnings power over the next 2-3 years. We reiterate our Overweight rating."

For an analyst ratings summary and ratings history on McGraw Hill Financial click here. For more ratings news on McGraw Hill Financial click here.

Shares of McGraw Hill Financial closed at $99.59 yesterday.

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