The financial intelligence company has an improved outlook, analysts said.
"Over the past three years, McGraw Hill completed the divestitures of broadcasting, education, and aviation week and recently announced the sale of McGraw Hill Construction for $320M, eliminating all non-financial operations while expanding financial advisory, pricing and analytical services over this period and achieving a compound growth rate of 11% in revenues and 26% in adjusted EPS," analysts said.
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"McGraw Hill has also returned over $5B to shareholders through dividends and share repurchases over the time frame. We believe McGraw Hill remains positioned for continued strong growth through increased market penetration," analysts added.
Shares of McGraw Hill closed up 0.45% at $91.13 on Friday.
Separately, TheStreet Ratings team rates MCGRAW HILL FINANCIAL as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MCGRAW HILL FINANCIAL (MHFI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."