Morgan Stanley Sees Attractive Upside in Multiple Stocks Ahead of Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy SPGI?
Source: CNBC
- Spotify User Growth: Morgan Stanley analysts predict that Spotify will surpass 300 million paid users ahead of its next earnings report, driven by continuous innovation in interactive features and an upcoming investor day that will provide the company an opportunity to showcase product improvements, thereby enhancing user engagement and market competitiveness.
- S&P Global Rating Maintained: Although Morgan Stanley lowered its price target for S&P Global from $580 to $556, analysts remain bullish on its unique position in the information services sector, believing that its diversified portfolio and capital return capabilities will drive stock price increases, with shares rising over 6% in the past month.
- Warner Music Group Outlook Positive: Morgan Stanley raised its price target for Warner Music Group to $38, with analysts asserting that the company’s concentrated ownership of music intellectual property in Western markets indicates undervaluation, and they expect revenue and earnings to accelerate, leading to a stock price increase of over 22% in the past month.
- Datadog Strong Business Momentum: Morgan Stanley highlighted that Datadog is entering its earnings report with strong core business momentum, projecting a 30% growth in Q1 and upward revisions for Q2 and FY26, indicating an attractive setup for the company in the current market environment.
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Analyst Views on SPGI
Wall Street analysts forecast SPGI stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 433.470
Low
546.00
Averages
617.77
High
675.00
Current: 433.470
Low
546.00
Averages
617.77
High
675.00
About SPGI
S&P Global Inc. provides essential intelligence. Its operations consist of five businesses: S&P Global Market Intelligence (Market Intelligence), S&P Global Ratings (Ratings), S&P Global Commodity Insights (Commodity Insights), S&P Global Mobility (Mobility) and S&P Dow Jones Indices (Indices). Market Intelligence is a global provider of multi-asset-class data and analytics integrated with purpose-built workflow solutions. Ratings is an independent provider of credit ratings, research, and analytics, offering investors and other market participants information, ratings and benchmarks. Commodity Insights is an independent provider of information and benchmark prices for the commodity and energy markets. Mobility is a provider of solutions serving the full automotive value chain, including vehicle manufacturers and retailers. Indices is a global index provider that maintains a variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Shareholder Return Plan: The company returned $1 billion to shareholders through share repurchases, raising the expected repurchase amount from 85% to at least 100% of adjusted free cash flow, which not only boosts shareholder confidence but also reflects optimism about future cash flows.
- Energy Market Challenges: The conflict in Iran has caused significant disruptions in the energy market, with management cautioning that it may take time for supply chains to normalize, potentially impacting growth in the energy sector and highlighting macroeconomic uncertainties.
- Software Business Divestiture: The company has signed an agreement to divest its upstream software portfolio, expected to close in the second half of 2026 or early 2027, a strategic move aimed at optimizing resource allocation and focusing on core operations to enhance overall efficiency.
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- Market Reaction Divergence: Unlike historical trends where fixed income markets reacted first, the impact of AI is showing a disjointed response in equity and fixed income markets, a trend expected to continue influencing investors' capital allocation decisions.
- Labor Market Challenges: Despite productivity gains, experts believe that the neutral rate may drift lower as the diffusion of AI technology makes sustaining employment growth more difficult, particularly in the private services sector.
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- Significant Revenue Growth: S&P Global reported a 10% year-over-year revenue increase in Q1 2026, with a 9% rise on an organic constant currency basis, indicating sustained competitiveness in the market and providing funding for future investments and expansions.
- Shareholder Return Plan: The company returned $1 billion to shareholders through share repurchases, raising the expected repurchase amount from 85% to at least 100% of adjusted free cash flow, which not only boosts shareholder confidence but also reflects optimism about future cash flows.
- Energy Market Challenges: The conflict in Iran has caused significant disruptions in the energy market, with management cautioning that it may take time for supply chains to normalize, potentially impacting growth in the energy sector and highlighting macroeconomic uncertainties.
- Software Business Divestiture: The company has signed an agreement to divest its upstream software portfolio, expected to close in the second half of 2026 or early 2027, a strategic move aimed at optimizing resource allocation and focusing on core operations to enhance overall efficiency.
See More
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- Productivity Gains Expected: Experts predict that the rapid adoption of AI will significantly enhance productivity, which could lead to a rise in neutral interest rates while also potentially causing deflationary effects that impact the global macro economy.
- Market Reaction Divergence: Unlike historical trends where fixed income markets reacted first, the impact of AI is showing a disjointed response in equity and fixed income markets, a trend expected to continue influencing investors' capital allocation decisions.
- Labor Market Challenges: Despite productivity gains, experts believe that the neutral rate may drift lower as the diffusion of AI technology makes sustaining employment growth more difficult, particularly in the private services sector.
- Shift in Investor Focus: As AI technology proliferates, investors will need to shift their attention to other companies within the S&P 493 and small to mid-cap firms, as the elevated gross margins and cash flow growth of AI providers will impact the business models across the market.
See More
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- Nominations Open: The 2026 Platts Global Energy Awards nominations are now open until July 1, 2026, aimed at recognizing excellence in energy security, decarbonization progress, and technological innovation, expected to attract significant industry participation.
- Judging Criteria: An impartial panel of international energy experts will evaluate finalists based on category-specific criteria, considering company profiles and financial performance during the designated timeframe, ensuring fairness and professionalism in the selection process.
- Awards Ceremony Details: Winners will be announced at a black-tie awards ceremony on December 3, 2026, in New York City, an event often referred to as the
See More
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- Broad Nomination Scope: The 2026 Platts Global Energy Awards are now open for nominations across 19 categories, aimed at recognizing exemplary leadership in energy security, decarbonization progress, technology, and community impact, with nominations closing on July 1, 2026.
- Transparent Judging Process: An impartial panel of international energy experts will evaluate finalists based on category-specific criteria and company financial performance, ensuring a fair and professional selection process.
- Grand Award Ceremony: Winners will be announced at a black-tie awards ceremony on December 3, 2026, in New York City, an event often referred to as the
See More
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- ESG Concerns Raised: Oklahoma Attorney General Gentner Drummond, along with 22 state attorneys general, sent a letter to Fitch, S&P, and Moody's demanding explanations for their use of environmental, social, and governance (ESG) factors in credit ratings, arguing this could undermine state bond ratings.
- Potential Conflict of Interest: The Attorney General highlighted that the agencies' reliance on speculative ESG predictions may lead to downgrades of fossil fuel companies, which could drive demand for their ESG consulting services, creating an undisclosed conflict of interest.
- Call for Transparency: The letter requests that rating agencies explain ESG-driven downgrades, withdraw or disclose ESG commitments, revise sector-specific methodologies, eliminate or disclose ESG consulting conflicts, and certify an internal controls review.
- Market Reaction: Following the letter's release, shares of S&P Global (SPGI) rose by 1.0% and Moody's (MCO) gained 0.7%, indicating market interest in the agencies' responses and the implications of the letter.
See More
US Stock Market Volatility Amid Economic Data
- Tech Stock Pressure: Technology stocks are under pressure due to concerns over the return on massive investments in artificial intelligence, as OpenAI recently failed to meet its new user and sales targets, leading to declines in shares of partners like Nvidia and Oracle, reflecting market caution regarding the future of the AI sector.
- Positive Economic Data: The US consumer confidence index unexpectedly rose to 92.8, surpassing expectations of 89.0, indicating an increase in consumer confidence that could positively impact the stock market, although overall market pressures remain.
- Surging Oil Prices: WTI crude oil prices jumped over 3% to a two-week high amid escalating tensions between the US and Iran over the Strait of Hormuz, potentially deepening the global energy crisis and impacting inflation expectations and stock performance.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will maintain interest rates at the upcoming meeting, despite increased uncertainty regarding future policy adjustments due to inflation and oil price volatility, reflecting investor caution about the economic outlook.
See More
