S&P Global's (SPGI) strategic review of Kensho Data & Platforms segment, with the possibility of divesting its Capital IQ and associated data businesses, can unlock upside for the stock, UBS said Wednesday in a research note.
The move will shift business mix to high quality-benchmark businesses, which should improve margins and lead to better execution, despite potential earnings dilution, UBS said.
UBS added it estimates that businesses under review represent about $2.3 billion to $2.4 billion in revenue and $700 million to $750 million in EBITDA.
Elsewhere, Market Intelligence fundamentals are improving with organic constant currency revenue growth accelerating in Q3 as the company sees revenue benefits from its AI-enabled products and AI-ready data, according to the note.
UBS maintained the company's buy rating with a $525 price target.
Price: 447.48, Change: -1.45, Percent Change: -0.32
