Gabelli Upgrades McGraw-Hill (MHP) to Buy; Move To Surface Value Through Split-Up

Gabelli upgraded McGraw-Hill (NYSE: MHP) from Hold to Buy.

Gabelli analyst says, "Now that the company is moving away from a holding company structure to two pure plays, we think that more value can surface and we would buy the stock. MHP currently trades at less than 7x next year’s EBITDA. We calculate a 2012 PMV of about $60 per share based on 8x Education EBITDA, 9x S&P EBITDA, 8x other financial services EBITDA (S&P equity research, capital IQ, etc.) and 7x information services EBITDA. The company’s timeline for the separation process (2012 YE) could be conservative."

For more ratings news on McGraw-Hill click here and for the rating history of McGraw-Hill click here.

Shares of McGraw-Hill closed at $40.26 yesterday.

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