S&P Global: Diversified Franchise Poised to Benefit from Rebounding Bond Issuance Despite Cyclical Weakness

Toni Kaplan, an analyst from Morgan Stanley, maintained the Buy rating on S&P Global. The associated price target remains the same with $627.00.

Toni Kaplan has given his Buy rating due to a combination of factors that highlight S&P Global’s resilience despite a softer issuance backdrop. While overall January issuance fell modestly year over year, the firm benefited from a healthy rebound in global corporate bond volumes, particularly in both investment-grade and high-yield segments, which supports its core ratings and data businesses.

At the same time, the weakness in leveraged loans and structured products appears cyclical rather than structural, suggesting room for recovery as market conditions normalize. Kaplan’s view implies that S&P Global’s diversified franchise, strong competitive position, and leverage to improving bond issuance can drive attractive earnings growth and justify a premium valuation for the stock.

In another report released on February 6, Wells Fargo also reiterated a Buy rating on the stock with a $675.00 price target.