IHS Inc.'s (NYSE:IHS) EBITDA Margin to Expand in 2011-2012 Says Needham

With many investors focusing on the EBITDA margins of IHS Inc. (NYSE:IHS), Needham estimates they'll expand in 2011 and 2012.

Needham said, "IHS reported another upside quarter and we believe that the company is well-positioned to potentially finish 2011 ahead of its opinion of its 2011 outlook (which is unchanged from that provided in early November). Investors tend to focus on IHS’s EBITDA margins and we estimate 100-125 bps of EBITDA margin expansion in 2011 and 200-400 bps of expansion in 2012."

Needham & Company maintains a "Buy" rating on IHS Inc., which closed Friday at $79.39, down $1.12, or 1.39 percent.