NEW YORK (TheStreet) -- Shares of IHS Inc. are down 1.77% to $127.24 in morning trading after the company was downgraded to "equal weight" from "overweight" at Barclays earlier on Monday. A price target of $135 was set for the global information company, down from its previous $150. The firm said valuation currently prices in growth at high range of estimates, leaving limited upside. Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. "We see limited upside to overall numbers without large M&A - and today we are cautious since valuations are high, especially for the larger assets," said Barclays analyst Manav Patnaik.a "We now have low confidence in potential upside to our 8% organic subscription growth expectation in 2015." Separately, TheStreet Ratings team rates IHS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate IHS INC (IHS) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 1.6%. Since the same quarter one year prior, revenues rose by 15.8%. Growth in the company's revenue appears to have helped boost the earnings per share. The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 99.1% when compared to the same quarter one year prior, rising from $23.36 million to $46.52 million. The gross profit margin for IHS INC is rather high; currently it is at 60.29%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.36% is above that of the industry average. Net operating cash flow has significantly increased by 101.28% to $167.48 million when compared to the same quarter last year. In addition, IHS INC has also vastly surpassed the industry average cash flow growth rate of 14.30%. Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels. You can view the full analysis from the report here: IHS Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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