Wells Fargo Upgrades S&P Global (SPGI) to Overweight; 'SPGI & INFO Better Together'

December 2, 2020 5:34 AM EST
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Price: $453.08 +0.31%

Rating Summary:
    15 Buy, 4 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 17 | Down: 5 | New: 36
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(Updated - December 2, 2020 6:44 AM EST)

(updated to add analyst comments)

Wells Fargo analyst William Warmington upgraded S&P Global (NYSE: SPGI) from Equal Weight to Overweight with a price target of $415 (from $330).

The analyst commented, "SPGI has proposed to acquire IHS Markit for ~$44B or ~$98 a share (~22x our 2022 adj. EBITDA) in an all-stock transaction. The combined company would create the largest information services companies owning many “benchmark” businesses diversified across several end-markets. The proposed merger would combine several complimentary businesses creating opportunities for significant cross-selling and likely new product development potentially accelerating future growth. We see the combined entity with higher cc growth rate, less cyclicality, and meaningful adj. EBITDA margin expansion opportunities potentially allowing for a higher multiple. Based on the growth acceleration, less cyclicality, and significant synergy opportunities we are upgrading SPGI from Equal Weight to Overweight and raising our PT from $330 to $415 (23.5x 2022E adj. EBITDA). We are currently not adjusting estimates
pending the close of the transaction expected 2H21."

For an analyst ratings summary and ratings history on S&P Global click here. For more ratings news on S&P Global click here.

Shares of S&P Global closed at $337.05 yesterday.


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