Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - Evercore ISI has reduced its price target on FactSet Research Systems (NYSE:FDS) to $328.00 from $394.00 while maintaining an "In Line" rating. The stock, currently trading near its 52-week low of $297.86, has declined 16.75% in the past week alone. According to InvestingPro analysis, the stock appears undervalued at current levels.
The firm cited margin concerns as a key factor in its decision, noting that FactSet faces a 250 basis point margin headwind from investments in its platform. Approximately two-thirds of this investment is allocated for growth initiatives, while one-third is designated for maintenance. The company maintains a healthy gross profit margin of 53.33%, though current investments may pressure these levels. InvestingPro data shows revenue growth of 5.07% over the last twelve months.
Evercore ISI expressed doubt about FactSet’s ability to achieve its fiscal year 2028 margin target of 37-38%, raising questions about the company’s long-term margin profile. The firm also suggested that the $40-60 million being reinvested may not be sufficient to accelerate growth materially, especially against larger competitors.
The analyst noted that new CEO Sanoke Viswanathan presented a "more balanced" view on artificial intelligence than other service companies have in the past, acknowledging "significant work ahead" and increasing competitive dynamics, including from startups entering the space.
Despite these concerns, Evercore ISI indicated that FactSet may be embedding conservatism in its Annual Subscription Value (ASV) outlook, citing momentum expected in the second half of fiscal year 2025 and an improving pipeline over the past five weeks. The company has demonstrated long-term stability through its 26-year track record of consecutive dividend increases. For deeper insights into FactSet’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
In other recent news, FactSet Research Systems Inc . reported its fiscal fourth-quarter earnings for 2025. The company’s adjusted earnings per share (EPS) came in at $4.05, slightly below the analysts’ forecast of $4.13. However, FactSet’s revenue exceeded expectations, reaching $597 million compared to the anticipated $592.79 million. Despite the revenue beat, the EPS shortfall has been a point of focus for investors. These developments reflect the company’s current financial performance and have drawn attention from various market analysts. While the earnings report highlighted mixed results, FactSet continues to be a subject of interest among investors and financial analysts.
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