Goldman Sachs Upgrading Shares Of The McGraw-Hill Companies

Goldman Sachs is upgrading shares The McGraw-Hill Companies, Inc. MHP to Buy from Neutral, and it has a $50 price target on shares. In a note to clients, Goldman Sachs writes, "We raise MHP to Buy from Neutral with 20% to our new $50 price target. We base our rating on: (1) unlocking value – MHP is some 20% undervalued versus peer rating agency, data and education segments. We believe MHP's planned broadcasting sale and ongoing segment review may unlock value via additional divestiture, or spin-offs; (2) raising EPS estimates – we raise EPS estimates above consensus in 2012-13 based on MHP's recently announced share repurchase program and likely G&A cuts as the company conducts its internal segment review; and (3) risks abating – legal and regulatory risks seem near a cycle-end, in our view. Shares of MHP lost 5 cents yesterday to close at $41.75, a loss of 0.12%.