Oppenheimer Boosts Price Target for S&P Global to $618, Maintains Outperform Rating

Oppenheimer has raised its price target for S&P Global (SPGI) to $618, maintaining an Outperform rating. The company's strong Q2 performance led to revised FY25 revenue growth and adjusted EPS forecasts. S&P Global operates in the financial services sector, offering data and benchmarks to capital and commodity market participants. Its ratings business is the largest credit rating agency globally, and the market intelligence segment is the largest by revenue. The company has a market capitalization of approximately $165.46 billion.

S&P Global (SPGI) has reported robust financial results for the second quarter of 2025, with revenue and earnings growth driven by strong demand for its data and analytics products. The New York-based company, a leading provider of credit ratings, benchmarks, and analytics solutions, has raised its annual profit forecast following a 6% increase in total revenue to $3.76 billion [2].

The company's Market Intelligence unit, which provides data and analytics, posted a 5% rise in revenue to $1.22 billion, contributing significantly to the overall revenue growth. S&P Global's adjusted profit for the quarter ended June 30, 2025, was $1.36 billion, or $4.43 per share, up from $1.28 billion, or $4.04 per share, a year earlier [1]. Analysts had estimated an adjusted profit of $4.22 per share.

S&P Global's strong performance has led Oppenheimer to raise its price target for SPGI to $618, maintaining an Outperform rating. The investment bank cited the company's revised FY25 revenue growth and adjusted EPS forecasts as the key drivers behind the upgrade [3].

The company's AI and data innovations, such as CreditCompanion and SPICE index builder, have also contributed to its growth. S&P Global's Market Intelligence division experienced a 7% organic constant currency revenue growth, showcasing the company's ability to adapt and thrive in a competitive market [2].

Despite the challenges faced, such as a 4% year-over-year decline in Billed Issuance and the impact of sanctions on Commodity Insights, S&P Global remains optimistic about its future prospects. The company anticipates total revenue growth between 5% to 7% for the remainder of the year, with adjusted margins ranging from 48.5% to 49.5% and adjusted diluted EPS between $17 and $17.25 [2].

S&P Global's strong performance highlights the increasing demand for reliable data and analytics in volatile markets. The company's shares have been up roughly 7% this year, pulling ahead of Moody's gain of less than 1% [3]. This trend is likely to continue as investors seek clarity in uncertain markets.

References:

[1] https://finance.yahoo.com/news/p-global-forecasts-annual-profit-124309086.html
[2] https://www.theglobeandmail.com/investing/markets/stocks/SPGI/pressreleases/33828596/sp-global-reports-strong-earnings-amid-challenges/
[3] https://finimize.com/content/sp-global-lifts-outlook-as-demand-for-analytics-climbs