Wire
S&P Delivered Strong Q1 Beat Amid Ratings Revenue Growth, Margin Expansion, Morgan Stanley Says
S&P Global (SPGI) reported solid Q1 results with revenue from its Ratings business well ahead of peer Moody's (MCO) and its margin above muted forecasts, Morgan Stanley said in a note emailed Wednesday.S&P's organic Ratings revenue increase was 11.5% ahead of Moody's, which saw an about 6% increase during the quarter, the note said.Morgan Stanley noted, however, that while issuance was strong throughout the quarter, an increase in geopolitical tensions may derail momentum if conditions deteriorate.Meanwhile, S&P's margins rose 93 basis points year on year, which was well above consensus estimates of about flat, and the company's 2026 margin guidance is now looking conservative, the note said.Additionally, S&P's Market Intelligence division "which is arguably the biggest focus for investors, cleared the bar with 6.3% organic growth," the note said.Morgan Stanley kept S&P's overweight rating and increased the company's price target to $557 from $556.Price: $429.55, Change: $-3.93, Percent Change: -0.91%
$SPGI