J.P. Morgan Neutral On IHS Inc. (IHC)

J.P. Morgan Chase & Co. has a Neutral rating and a $75 price target on shares of IHS Inc. IHS. In a note sent to investors, J.P. Morgan writes, "We're maintaining our Neutral rating on IHS shares. In FQ4,10, revenues (+15%) were above our estimates while EBITDA ex stock comp. (+16%) was slightly below. “Adjusted” EPS of $0.81 was below JPM's $0.82, but $0.02 above consensus. As expected, organic revenue growth (+6%) decelerated from FQ3's pace. However, it was 200bps below our estimate—while M&A provided some revenue upside. The F2011 outlook was reiterated. Management remains upbeat on sales trends across the product domains. And solid deferred revenue gains (+10% at end of FQ4) should result in strengthening subscription revs. throughout F2011. We like IHS' growth strategy and see room for continued margin drive in coming years, but we think the shares could take a breather near-term given valuation and the recent price spike." Shares of IHS lost 85 cents yesterday to close at $80.51.