BMO reiterates S&P Global stock outperform with $590 target

Published 14/04/2025, 15:40
BMO reiterates S&P Global stock outperform with $590 target

On Monday, BMO Capital Markets maintained its optimistic stance on S&P Global (NYSE:SPGI), reaffirming an Outperform rating and a price target of $590.00. The endorsement comes as S&P Global announced its intention to sell OSTTRA, a joint venture with CME Group (NASDAQ:CME), to private equity firm KKR for a total of $3.1 billion. The transaction, which is expected to conclude in the second half of 2025, will see the proceeds split evenly between S&P Global and CME Group.

OSTTRA, a UK-based company specializing in managing post-trade workflows, contributed $43 million in equity income to S&P Global’s finances in 2024, a figure that is not included in the company’s Adjusted EPS calculation. BMO Capital’s analyst noted the absence of specific details regarding the use of the sale’s proceeds but suggested that the move would further streamline S&P Global’s operations.

The sale announcement reflects S&P Global’s strategy to simplify its business structure. OSTTRA’s divestiture is seen as a step towards focusing on core operations, although the future allocation of the sale’s proceeds remains unspecified by the company.

The transaction is subject to customary closing conditions and regulatory approvals, with the expectation that it will be finalized in the latter part of 2025. The deal is anticipated to have a significant financial impact on both S&P Global and CME Group, given the substantial amount involved.

S&P Global’s decision to offload its stake in OSTTRA to KKR marks a notable shift in its joint venture commitments and could potentially reshape its investment portfolio. Investors and market observers will be closely monitoring the completion of this deal and its subsequent effects on the company’s financial performance.

In other recent news, S&P Global has announced plans to revise its economic forecasts due to new tariffs introduced by the U.S. administration. The company expects a significant impact on U.S. inflation and GDP growth, with potential credit score downgrades on the horizon. Additionally, S&P Global Market Intelligence has launched Global Entity Linking and ESG Data Management Services through Snowflake (NYSE:SNOW)’s AI Data Cloud, enhancing data integration and analysis capabilities for clients. In terms of mergers, S&P Global, in partnership with CME Group, has agreed to sell OSTTRA to KKR for $3.1 billion, with the transaction expected to close in the second half of 2025.

Meanwhile, Mizuho (NYSE:MFG) Securities has initiated coverage on S&P Global with an Outperform rating, citing the company’s strong business model and technological investments as reasons for a positive outlook. Mizuho set a price target of $599, highlighting the company’s pricing power and market position. Similarly, RBC Capital Markets has maintained its Outperform rating on S&P Global, with a price target of $620, acknowledging strong organic growth in the Market Intelligence segment and promising financial guidance for the 2025 fiscal year. These analyst ratings suggest confidence in S&P Global’s future performance and strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.