On Friday, BMO Capital Markets maintained their positive stance on S&P Global (NYSE:SPGI) shares, reiterating an Outperform rating and a price target of $564.00. The firm's analyst highlighted that S&P Global's billed issuance increased by 11% year-over-year in November, marking a slowdown from the more robust growth seen in previous months.
Despite the deceleration, the analyst noted that the growth in billed issuance could still provide an upside to the anticipated 11% annual Ratings revenue growth for the fourth quarter of 2024. Additionally, S&P Global's Indices average daily contract value (ADV) saw a modest year-over-year rise, following a significant drop the month before.
This performance suggests a nuanced picture for S&P Global, with some areas of the business experiencing a slowdown in growth, while others are showing resilience. The analyst's reiteration of the Outperform rating and price target reflects a continued optimistic outlook for the company's stock.
Investors are keeping an eye on these metrics as they provide insight into S&P Global's operational performance and potential future revenue streams. The company's ability to maintain growth in billed issuance and ADV is particularly significant given the broader market conditions.
S&P Global has established itself as a key player in providing ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. The company's performance is closely watched by investors as it often serves as a barometer for broader market activity.
The BMO Capital Markets analyst's comments offer a snapshot of S&P Global's current performance, with the maintained Outperform rating signaling confidence in the company's ability to navigate market fluctuations and maintain growth in key areas of its business.
In other recent news, S&P Global reported a 16% year-over-year increase in total revenue for the third quarter of 2024, reaching $3.6 billion, primarily driven by the company's ratings division, where transaction revenue surged over 80%. Adjusted diluted earnings per share (EPS) also experienced a 21% growth, primarily due to margin expansion and share repurchases.
Analyst firms Stifel, Baird, and BofA Securities have all adjusted their stock price targets for S&P Global, reflecting confidence in the company's strong performance and potential for future earnings growth. Stifel revised its price target to $560, Baird to $575, and BofA Securities to $610, all maintaining positive ratings on the stock.
In addition to financial performance, S&P Global has announced leadership changes, with Eric Aboaf slated to join as CFO in February 2025 and Saugata Saha set to become President of the Market Intelligence Division. These recent developments indicate a strategic focus on long-term growth and resilience in the face of market challenges. The company also raised its revenue growth forecast for 2024 to between 11.5% and 12.5%, with adjusted diluted EPS estimates ranging from $15.10 to $15.30.
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