Benchmark Raises Price Target on McGraw-Hill on Positive Outlook; Maintains "Buy" (MHP)

Benchmark Raises Price Target on McGraw-Hill on Positive Outlook; Maintains “Buy” (MHP)


Benchmark Company analysts raised the price target on McGraw-Hill Companies Inc (MHP) on Monday, as they are positive in the information services company’s 2013 outlook – especially its Standard & Poor’s credit rating business.

The analysts reiterated a “Buy” rating on MHP and see shares reaching $59, up from the previous target of $57. This new valuation suggests a 14% upside to Monday’s closing price of $51.93.

A Benchmark analyst commented, “McGraw Hill recently completed the sale of McGraw Hill Education to investment funds associated with Apollo Group for $2.5 billion. Through Standard & Poor’s, McGraw-Hill is one of the two the largest credit rating agencies in the world. Ratings agency revenue is highly correlated to bond issuance. 2012 appears headed for a strong year for bond issuance. With a continuing low interest rate environment, corporations should continue to issue new debt for capital expenditures, share repurchases, mergers and acquisitions, and refinancing. There remains a substantial amount of debt to be refinanced that ought to drive debt issuance through 2015. S&P estimates more than $1 trillion will be financed each year for the next several years.”

McGraw-Hill shares were inactive during pre-market trading on Tuesday. The stock is down -5.01% year-to-date.

The Bottom Line
Shares of McGraw-Hill (MHP) have a dividend yield of 2.16% based on last night’s closing price of $51.93 and the company’s annualized dividend payout of $1.12 per share.

McGraw-Hill Companies Inc (MHP) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Free Updates

Join over 100,000 investors who get the latest news from

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today