S&P Global: Why The Market Isn't Responding To The Q3 2024 Beat

YR Research
4.21K Followers
(9min)

Summary

  • S&P Global exceeded Q3 expectations with 16% revenue growth and 21% adjusted EPS growth, but shares fell due to concerns about future demand pull-forward.
  • Despite short-term worries, S&P Global is well-positioned for market-beating revenue and EPS growth, driven by diversified segments and operational leverage.
  • With current valuation in the 30x earnings range, I reiterate a 'Buy' rating, targeting $577 per share by late-2025 for 17% upside.

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S&P Global (NYSE:SPGI) followed its largest competitor Moody's (MCO) in handily exceeding consensus estimates in the third quarter, driving 16% revenue growth and adjusted EPS growth of 21%.

Despite the better-than-expected results, shares are falling as

This article was written by

4.21K Followers
I aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their downside risk is too high.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SPGI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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