SPGI - S&P Global: Higher Revenue Growth Post-Merger Warrants A Substantially Higher Target Price
- S&P Global's merger with IHS Markit warrants higher revenue growth rate ranges compared to historical figures.
- A 10%-15% revenue growth rate range is reasonable due to synergy effects if the merger is successful.
- A target price of $636 is realistic.
- Short-interest has increased in S&P Global and IHS Markit, a sign that some institutional players are betting on a potential failure of the merger and engage in risk arbitrage.
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S&P Global: Higher Revenue Growth Post-Merger Warrants A Substantially Higher Target Price