Seaport Global Securities initiates MSCI stock with Buy rating, $650 price target

Published 01/10/2025, 13:24
Seaport Global Securities initiates MSCI stock with Buy rating, $650 price target

Investing.com - Seaport Global Securities initiated coverage on MSCI Inc. (NYSE:MSCI) with a Buy rating and a price target of $650.00 on Wednesday. The company, currently valued at $43.9 billion, has demonstrated strong financial health according to InvestingPro data, with an impressive 82.18% gross profit margin.

The research firm views MSCI as a "best-in-breed compounder" with multiple growth levers across its business segments, including Index, Analytics, Climate & Sustainability, and Private Assets.

Seaport Global Securities highlighted the company’s index business as its "crown jewel," noting it holds a market leadership position within International and Thematic indices.

The firm also pointed to MSCI’s deep, long-standing relationships with Asset Owners as a key strength for the company.

MSCI provides investment decision support tools to investment institutions including equity indices, portfolio risk and performance analytics, and governance tools.

In other recent news, MSCI Inc. reported better-than-expected earnings for the second quarter of 2025, with earnings per share of $4.17, surpassing the forecasted $4.14. The company’s revenue also exceeded expectations, reaching $772.68 million compared to the anticipated $769.56 million. In addition, MSCI priced a $1.25 billion offering of senior unsecured notes due in 2035 at an annual interest rate of 5.25%. The proceeds from this offering are intended to repay outstanding borrowings under its revolving credit facility and cover related fees and expenses. Any remaining funds may be used for general corporate purposes, including potential share repurchases, investments, and acquisitions. Meanwhile, Evercore ISI has lowered its price target on MSCI to $588.00 from $631.00, while maintaining an Outperform rating. This adjustment is due to slower-than-expected subscription growth, as the anticipated reacceleration in subscription run rate growth has not materialized.

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