UPDATE: Goldman Sachs Initiates Coverage on McGraw Hill Financial with Buy Rating, $75 PT on Improved Fundamentals, Return of Capital

In a report published Friday, Goldman Sachs analyst Andre Benjamin initiated coverage on McGraw Hill Financial MHFI with a Buy rating and $75.00 price target. In the report, Goldman Sachs noted, “We initiate coverage of MHFI with a Buy rating and 18% total return to a $75, 12-month, EV/EBITDA-based target price. Shares screen attractively on value vs. growth, with strong multi-year growth to be driven by (1) ratings agency – continued growth in fixed investment and M&A activity globally along with large amounts of maturing debt – three key drivers of debt issuance activity; (2) Platts - new products and sustained pricing power; and (3) Indices – increasing trading activity and equity AUM. We are 7%/5% above consensus 2014E/2015E EBITDA estimates.” McGraw Hill Financial closed on Thursday at $64.75.