🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

BMO raises S&P Global shares target on strong issuance data

EditorEmilio Ghigini
Published 2024-04-01, 05:36 a/m
SPGI
-

On Monday, BMO (TSX:BMO) Capital Markets adjusted its price target for S&P Global (NYSE:SPGI) shares, a financial information and analytics firm, increasing it to $483 from $480. The firm has maintained its Outperform rating. The adjustment follows the release of data indicating a significant increase in billed issuance.

S&P Global reported a 66% year-over-year rise in billed issuance for February, marking the second consecutive month of such robust growth. This performance is noted as the strongest since S&P Global began releasing this data on a monthly basis. BMO Capital's analysis also highlights positive trends in investment grade and high yield data from BMO Fixed Income for March.

Despite the positive trends, BMO Capital has made slight reductions to its forecasts for other segments of S&P Global's business, particularly the Indices and Markets Intelligence divisions. However, the overall positive outlook on the billed issuance data has led to an increase in BMO Capital's estimates for S&P Global, culminating in the revised price target.

The analyst from BMO Capital commented on the rationale behind the adjustment.

"We are raising our estimates following disclosures that billed issuance rose 66% y/y in February for the second straight month—a strong start to the year and both the best performance since the company began disclosing this monthly data."

Investors and market watchers will likely take note of BMO Capital's updated stance on S&P Global as it reflects the company's strong start to the year in terms of billed issuance, which is a key indicator of performance in the financial information sector. The maintained Outperform rating alongside the slight price target increase suggests confidence in the company's ongoing growth trajectory.

InvestingPro Insights

As S&P Global (NYSE:SPGI) demonstrates a strong start to the year with a significant rise in billed issuance, it's valuable to consider additional insights that InvestingPro provides. According to InvestingPro data, S&P Global has a market capitalization of $133.21 billion and is trading at a high earnings multiple with a P/E ratio of 51.74, which adjusts to 43.57 based on the last twelve months as of Q4 2023. This high valuation is supported by a substantial revenue growth of 11.77% over the same period, indicating the company's ability to expand its financial base.

Moreover, S&P Global has shown a commitment to shareholder returns, having maintained dividend payments for 54 consecutive years and raising its dividend for the last 10 years. The dividend yield as of the latest data stands at 0.86%, with a growth of 7.06% in the last twelve months as of Q4 2023. These InvestingPro Tips highlight the company's stable financial management and its potential attractiveness to income-focused investors.

For those interested in a deeper analysis, InvestingPro offers additional tips on S&P Global, including insights into earnings revisions and short-term liquidity concerns. With these considerations in mind, readers looking to further explore S&P Global's financial health and investment potential can benefit from the comprehensive analysis available on InvestingPro. To access these insights and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 6 more InvestingPro Tips available for S&P Global that could provide valuable context for investors and market analysts alike.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.