Jefferies Reiterates Buy Rating/Raises PT on IHS Inc. (IHS)

Jefferies & Company is out with a research report this morning, where it reiterates its Buy rating on IHS Inc. EMS: it has a price target of $86.00 on the stock, which is up from $76.00. The Jefferies analysts cited the company's recently reaffirmed 2010 guidance, as well as its guide higher for 2011 for the increased price target and estimates. The analysts also noted that IHS has been granted exclusive rights to distribute Chinese economic/manufacturing data. They view this as a significant growth opportunity for IHS, as the pipeline is built in the second half of 2011 and financial contribution comes in fiscal year 2012. As for valuation, the analysts remarked, “We are increasing our price target from $76 to $86, implying 15% upside. The IHS shares trade at 11.4x EBITDA and 22.6x Adj EPS. We believe IHS higher growth rate due to strong organic prospects and acquisitions deserves a higher multiple, closer to 13.5x '11 EBITDA.”