S&P Global Plans Spin-Off of Automotive Intelligence Unit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: NASDAQ.COM
- Business Transformation: S&P Global has gradually evolved from a traditional credit rating agency into a broader financial infrastructure platform, encompassing benchmark indexes, commodity intelligence, and enterprise analytics, which enhances its long-term competitiveness in capital markets.
- Spin-Off Opportunity: The planned spin-off of S&P Global's automotive intelligence unit into a separate publicly traded company could unlock hidden shareholder value, allowing investors to benefit from both the core financial platform and the standalone automotive intelligence business.
- Market Reaction: Despite a 25% decline in share price over the past 12 months, the market has not fully appreciated S&P Global's diversified operations, and the spin-off may prompt a reassessment of the independent values of both businesses, boosting investor confidence.
- Growth Potential: As the automotive industry shifts towards software and data-driven solutions, S&P Global's Mobility business is poised for sustainable growth, and the spin-off will help it gain greater visibility and an independent growth trajectory.
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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: 417.680
Low
546.00
Averages
617.77
High
675.00
Current: 417.680
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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