IHS Markit (INFO) Stock Rising on Upgrade at RBC
NEW YORK (TheStreet) -- Shares of IHS Markit (INFO) - Get Reportare up by 1.01% to $36.02 this afternoon, after the data provider was upgraded to "outperform" from "sector perform" at RBC Capital Markets on Thursday.
The firm raised its price target for the company to $42 from $36, citing strong profit growth and expected revenue increase. RBC added that much of the company's growth can be attributed to the recent merger between Colorado-based IHS and the London-based company Markit,valued at more than $13 billion.
"Despite sluggish near-term growth, we expect INFO to deliver near industry leading mid-high teens EPS and FDF/share growth in the next two years," RBC continued in an analyst note.
IHS Markit trades at a 15% to 20% discount vs. its information services peers, such as Equifax (EFX), Gartner Inc. (IT) and Verisk Analytics (VRSK).
The discount should narrow, though, as the company's organic revenue growth shifts from low single digits to the 6-7% its competitors hold, RBC added.
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