America's Business & Information Services Sector In Focus: Goldman Sachs Keeps Buy On Cintas, Gartner & More
Portfolio Pulse from Nabaparna Bhattacharya
Goldman Sachs analyst George K. Tong has provided insights on America's Business & Information Services sector, highlighting the sector's performance and future outlook. The sector underperformed the S&P 500 in 2023 but is expected to see organic revenue growth in 2024, with Info Services outperforming Business Services. Tong reiterated Buy ratings on Cintas Corporation, CoStar Group, Fair Isaac Corporation, Gartner, Inc., and S&P Global Inc., with respective price targets. Conversely, Sell ratings were maintained for H&R Block, Inc. and Robert Half Inc., with their respective price targets, due to muted outlooks and declining revenues.
January 09, 2024 | 8:40 pm
News sentiment analysis
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POSITIVE IMPACT
CoStar Group, Inc. receives a Buy rating from Goldman Sachs with a price target of $98, with expectations of significant EBITDA margin expansion.
The projection of EBITDA margins expanding from 20% to 40% by 2027 indicates strong growth potential, likely contributing to a positive short-term impact on the stock.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Goldman Sachs maintains a Buy rating on Cintas Corporation with a price target of $673, citing strong organic revenue growth and operating margin expansion.
The positive outlook and high price target suggest confidence in Cintas Corporation's future performance, which could lead to a short-term increase in stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Fair Isaac Corporation is rated Buy by Goldman Sachs with a price target of $1,289, driven by pricing power and ongoing double-digit ARR growth.
The healthy valuation upside and strong growth prospects for Fair Isaac Corporation suggest a positive short-term impact on the stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Gartner, Inc. maintains a Buy rating from Goldman Sachs with a price target of $445, supported by resilient Research CV growth trends.
Gartner's essential products and improved margins provide a strong basis for the Buy rating and positive price target, indicating a likely short-term positive impact.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
S&P Global Inc. is given a Buy rating by Goldman Sachs with a price target of $483, citing diversified revenue mix and earnings growth drivers.
The diversified revenue mix and unique earnings growth drivers for S&P Global Inc. suggest a strong outlook, likely leading to a short-term positive impact on the stock.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
H&R Block, Inc. retains a Sell rating from Goldman Sachs with a price target of $34, due to a muted outlook for the 2024 tax season.
The muted outlook for the upcoming tax season and modest growth expectations could negatively affect investor sentiment, likely leading to a short-term negative impact on the stock.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
Robert Half Inc. continues with a Sell rating from Goldman Sachs and a price target of $64, with worsening revenue declines and unstable revenue trends.
The continued revenue declines and lack of stabilization in revenue trends present a negative outlook, which could result in a short-term negative impact on the stock.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90