Wells Fargo Upgrades S&P Global (SPGI) to Overweight; 'SPGI & INFO Better Together'
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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."
Shares of S&P Global closed at $337.05 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Hot Comments, Hot Upgrades, Upgrades
Related EntitiesStandard & Poor's, Wells Fargo, Definitive Agreement
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