IHS Markit (INFO) Stock Upgraded to ‘Buy’ at Deutsche Bank

IHS Markit's (INFO) stock rating was boosted to ‘buy’ from ‘hold’ at Deutsche Bank on Friday morning.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- IHS Markit's (INFO) - Get Report stock rating was raised to "buy" from "hold" at Deutsche Bank on Friday morning.

The firm also upped its price target to $42 from $37 on shares of the London-based provider of financial information services.

The higher rating and price target are due to the significant acceleration in organic revenue and earnings per share growth and the company's attractive valuation compared to peers.

"We believe IHS Markit is well positioned to drive solid earnings per share growth over the coming years. We expect organic revenue growth to accelerate from +1% year-over-year in '16E to reach management's target of mid-single digits in '18E at +5% YoY," Deutsche Bank wrote in an analyst note.

Revenue acceleration and margin expansion should drive earnings per share growth in the mid to high teens, according to the firm.

Earlier this week, IHS (IHS) and Markit announced the competition of their previously announced merger and formed IHS Markit. The new company began trading yesterday under the stock ticker INFO.

Shares of IHS Markit are declining 0.7% to $35.64 at the start of trading on Friday.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and expanding profit margins.

But the team also finds weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and generally higher debt management risk.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: INFO

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