IHS Markit (INFO) PT Raised to $50 at Deutsche Bank

Deutsche Bank raised its price target on IHS Markit (NASDAQ: INFO) to $50.00 (from $44.00) while maintaining a Buy rating, saying the stock will benefit when the company presents it forward strategy at its NYC investor day -April 26th- and investors become more comfortable in its ability to drive 4-6% long-term organic revenue growth and EBITDA in the mid-40% range.

Analyst Kevin McVeigh commented, "Consistent with today’s 3%+ stock move, we believe overall market conditions could impact the pace of how quickly the INFO stock grinds toward our new $50 [up from $44] price target as the market discounts Q1 revenues of $844m vs DBe/Street at $846m + $843m, EBITDA of $320.2M, versus DBe/Street at $314.1m/$307.6m, driving EPS of $0.45 compared to DBe/Street at $0.45 + $0.45. We conservatively raise our 2017E EBITDA to $1,395m [$1,390m prior] as EBITDA of $320.0m beat DBe/Street of $314.0m/$308.0m. We boost our PT to $50 [$44 prior (~15.5x our 2018 EV/EBITDA)] as we introduce 2018E EBITDA of $1,525m. We are comfortable with our new price target as we believe the INFO stock will benefit when the company presents it forward strategy at its NYC investor day -April 26th- and investors become more comfortable in its ability to drive 4-6% long-term organic revenue growth and EBITDA in the mid-40% range with 100bps of annual expansion thereafter."

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