S&P Global's Spin-Off of Mobility Business Creates New Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Fool
- Business Diversification: S&P Global has evolved beyond a credit rating agency by expanding into automotive data, software, and analytics through the acquisition of IHS Markit, creating a comprehensive ecosystem that enhances its competitiveness in capital markets through benchmark indexes, commodity intelligence, and enterprise analytics.
- Spin-Off Strategy: The planned spin-off of S&P Global's Mobility business into a standalone publicly traded company is expected to unlock hidden value that the market may currently underestimate, allowing investors to better assess the independent value of each segment, particularly as the automotive industry increasingly relies on software and data.
- Market Reaction: Despite a 25% decline in share price over the past year, S&P Global's core business continues to benefit from long-term trends in passive investing and financial data analytics, and the spin-off may lead to more accurate valuations of its businesses, ultimately enhancing shareholder value.
- Growth Potential: As the automotive industry transitions towards software and data-driven solutions, the Mobility business holds significant growth potential, and the spin-off is likely to attract more attention, prompting investors to recognize its independent growth prospects and potentially driving a rebound in stock price.
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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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