Argus has increased the price target for S&P Global (SPGI, Financial) to $570, up from a previous $530, and maintains a Buy rating on the company's stock after reviewing the first-quarter performance. S&P Global has successfully completed a multiyear restructuring and is now concentrating on expanding its faster-growing financial divisions. Analysts believe that the company's management is well-equipped to navigate through the challenges posed by current inflationary pressures and elevated interest rates.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for S&P Global Inc (SPGI, Financial) is $588.91 with a high estimate of $627.00 and a low estimate of $537.00. The average target implies an upside of 12.98% from the current price of $521.26. More detailed estimate data can be found on the S&P Global Inc (SPGI) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, S&P Global Inc's (SPGI, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for S&P Global Inc (SPGI, Financial) in one year is $535.82, suggesting a upside of 2.79% from the current price of $521.255. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the S&P Global Inc (SPGI) Summary page.
SPGI Key Business Developments
Release Date: April 29, 2025
- Total Revenue Growth: Increased 8% year over year.
- Subscription Product Revenue Growth: Increased 7% year over year.
- Margin Expansion: Up 240 basis points on a trailing 12-month basis.
- Adjusted Diluted EPS Growth: Increased 9% year over year.
- Capital Returned to Shareholders: Over $900 million through dividends and repurchases in Q1.
- Organic Constant Currency Revenue Growth: 9% for the company.
- Sustainability and Energy Transition Revenue: Grew 20% to $93 million in the quarter.
- Private Markets Revenue Growth: Increased 21% year over year to $140 million.
- Market Intelligence Revenue Growth: Increased 5% in the first quarter.
- Ratings Revenue Growth: Increased 8% year over year.
- Commodity Insights Revenue Growth: Increased 9% year over year.
- Mobility Revenue Growth: Increased 9% year over year.
- S&P Dow Jones Indices Revenue Growth: Increased 15% year over year.
- Adjusted Expenses Growth: Increased 4% in the quarter.
- Operating Margin for Commodity Insights: Improved by 90 basis points to 48.1%.
- Mobility Segment Margin Improvement: Improved 40 basis points year over year to 38.5%.
- Indices Operating Margin: Remained unchanged at 72.9%.
- Guidance for Total Revenue Growth: Expected in the range of 4% to 6% for the year.
- Adjusted Margins Guidance: Expected in the range of 48.5% to 49.5%.
- Adjusted Diluted EPS Guidance: Expected in the range of $16.75 to $17.25.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- S&P Global Inc (SPGI, Financial) reported an 8% year-over-year increase in total revenue for the first quarter of 2025, with subscription products growing by 7%.
- The company achieved a 9% growth in adjusted diluted EPS and expanded margins by 240 basis points on a trailing 12-month basis.
- S&P Global Inc (SPGI) returned over $900 million to shareholders through dividends and repurchases in the first quarter.
- The company announced the intent to separate its Mobility division into a standalone public company, which is expected to enhance strategic focus and shareholder value.
- Strong engagement with platforms was noted, with active users across Capital IQ platforms, Platts Connect, and automotiveMastermind increasing by 23% year over year.
Negative Points
- S&P Global Inc (SPGI) expects billed issuance to be approximately flat year over year, with a decline anticipated in the second quarter.
- The company noted a slowing pace of decision-making in the markets, impacting the M&A environment and issuance volumes.
- Market volatility and geopolitical risks are creating challenges in predicting central bank actions and capital markets activity.
- The Ratings business faces near-term headwinds with expected declines in issuance volumes, particularly in high yields.
- The company anticipates lower growth in Ratings and Indices due to market-driven factors, impacting revenue guidance.
