In a report released yesterday, Jeffrey Silber from BMO Capital maintained a Buy rating on S&P Global (SPGI – Research Report), with a price target of $590.00.
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Jeffrey Silber has given his Buy rating due to a combination of factors that highlight S&P Global’s strong market position and potential for growth. Despite a recent decline in billed issuance, which fell 3% year-over-year in January, Silber notes that this is the first decline in 13 months following a period of record issuance throughout 2024. S&P Global’s management has projected low-single-digit growth in billed issuance for 2025, aligning with Moody’s guidance, and anticipates a 3%-5% annual increase in Ratings revenue.
Furthermore, Silber points to the positive performance of S&P Global’s Indices segment, where the average daily contract value rose by 7% year-over-year in January, rebounding from a decline in the previous month. The company expects 8%-10% year-over-year growth in Indices revenue for 2025, following a 16% increase in 2024. Additionally, S&P Global’s diversified global portfolio, bolstered by its merger with IHS Markit, enhances its information service offerings and reduces reliance on the more volatile debt issuance market.
In another report released on February 18, UBS also maintained a Buy rating on the stock with a $640.00 price target.