Goldman Sachs Reports IHS Organic Growth Returns To All Segments

In a report published by Goldman Sachs, IHS IHS organic growth returns to all segments.

Goldman Sachs said that IHS reported in line 1QFY11 revenue, adjusted EBITDA, and adjusted EPS of $295 mn, $83 mn, and $0.71 vs. our estimates of $291 mn, $84 mn, and
$0.68 Organic growth improved to 9% yoy, with discretionary spend turning positive , letting all segments grow organically. “Our FY11E cash EPS increases to $3.41 vs $3.33, adjusting our stock based compensation expense tax add back (FY12E-FY13E cash EPS remains unchanged). FY11 revenue guidance range was raised slightly and tightened, with the high end matching our estimate. We remain Neutral rated. Our P/E-based, 12-month price target of $82 ($74 prior), including M&A premium implies 24X 2011E EPS (22X prior), near IHS' historic average as organic growth approaches normalized levels.”

IHS closed yesterday at $85.79.