3 Things to Watch in S&P Global After the IHS Markit Deal

Analysts say S&P Global has a durable moat but faces complexity and leverage after the IHS Markit acquisition.
Watch management execution, margin recovery, and balance-sheet repair as the main near-term drivers.
Business moat: S&P indices and ratings provide recurring revenue, pricing power, and high switching costs.
Management: New CEO Martina Chung has relevant experience; execution on integration and new growth avenues (AI, DeFi, blockchain, private markets) is critical.
Financials: Recent revenue and profit improvement, strong cash generation, but margin weakness and added leverage from the IHS Markit deal.
Valuation & returns: Panel projects roughly 5–15% annual returns; current pricing implies market‑level to modest outperformance.
Investment takeaway: Appropriate as a core holding for steady cash flows; consider buying on meaningful pullbacks and monitor debt reduction and execution.
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