On Tuesday, S&P Global shares (NYSE: SPGI) received a revised price target from BMO Capital Markets, increasing to $576 from the previous target of $564. The firm retained its Outperform rating on the stock. The adjustment follows a robust fourth quarter in 2024, where debt issuance surpassed expectations.
Jeffrey Silber of BMO Capital cited the stronger-than-anticipated performance in the fourth quarter of 2024 as the primary reason for the revision. "We are raising our estimates and target price on SPGI (to $576 from $564) owing to a stronger-than-expected 4Q24 debt issuance," Silber stated. He noted that S&P Global's full-year 2024 issuance guidance was more optimistic compared to Moody's Corporation (NYSE:MCO), with S&P Global projecting a 50% increase versus Moody's mid-30% range.
The upbeat adjustment is supported by S&P Global's own billed issuance data for the months of October and November, along with other market data, which suggested that the growth experienced in the fourth quarter was better than initially projected.
S&P Global, a leading provider of ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide, has been closely watched by analysts for signs of how debt markets are performing. The company's performance is often seen as an indicator of broader economic trends, particularly in the financial services sector.
In other recent news, Moody's Corporation has announced several significant developments. The company recently reported a 23% increase in revenue, reaching $1.8 billion, and a 32% rise in adjusted diluted earnings per share for the third quarter of 2024, largely driven by the ratings business and a 70% surge in transactional revenue.
Moody's also acquired Numerated Growth Technologies, a loan origination platform, to enhance its lending suite offerings. In analyst activities, Citi initiated coverage on Moody's with a Buy rating and a $565 target price, while Baird raised the price target from $490 to $512, maintaining an Outperform rating. These are recent developments shaping Moody's trajectory.
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