UPDATE: Piper Jaffray Reiterates Overweight Rating, Lowers PT on McGraw-Hill Companies
In a report published Monday, Piper Jaffray & Co. reiterated its Overweight rating on McGraw-Hill Companies (NYSE: MHP), but lowered its price target from $62.00 to $60.00.
Piper Jaffray noted, “We raise our estimates for MHP to reflect continued positive momentum in debt issuance in 4Q. However, our price target moves slightly lower (to $60 from $62) with higher estimates offset by reduced cash balances due to the recent $2.50/share special dividend. We remain enthusiastic about ‘New' MHP's potential for low/mid-teens sustainable EPS growth and therefore maintain our Overweight rating. In eliminating the underperforming education unit, ‘New' MHP should enjoy faster growth, higher margins, stronger free cash flow, and higher ROIC, which we believe justify a high-teens multiple on forward earnings.”
McGraw-Hill Companies closed on Friday at $53.87.
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