Morgan Stanley Reports IHS Organic Revenue Growth Hits 9 Percent

In a report published by Morgan Stanley, IHS IHS organic revenue growth hit 9 percent.

Morgan Stanley said that IHS delivered a solid quarter, driven by stronger-than-expected organic growth of 9%, up from 6% in Q4, a good recovery after last quarter's stagnation in organic growth. “The organic growth rate inherent in the deferred revenue was 14%, up from 10% in the previous two quarters, which bodes well for future results. While margins were lower than we anticipated, management reiterated confidence in the goal of 35% by 2013. Though we believe the company has significant growth and margin expansion potential, we remain Equal-weight on the stock as it is trades at the highest multiple in its peer group (on a standardized basis) at 18.1x our CY11E EBITDA vs. the peer average of 13.7x.”

IHS closed yesterday at $85.79.