Figma Shares Indicated To Open $105/$110
On Friday, UBS reaffirmed its Buy rating and $700.00 price target for MSCI Inc . (NYSE:MSCI), following a recent investor meeting with the company’s President and COO, Baer Petit. Currently trading at $551.96, with analyst targets ranging from $530 to $723, InvestingPro data suggests the stock is in oversold territory. The meeting underscored the positive outlook shared during MSCI’s fourth-quarter results, indicating an active start to the year.
MSCI’s management expressed that the core asset management client base is showing signs of stabilization, and the company’s ability to set prices remains strong, reflected in its impressive 82% gross margin. The introduction of new client segments and product expansions positions MSCI to potentially push index growth beyond 10%, building on its current 13% revenue growth. Additionally, a shift in asset allocation towards global investments away from the U.S. market could serve as a further advantage for the company. InvestingPro subscribers can access detailed analysis of MSCI’s financial health and growth metrics in the comprehensive Pro Research Report.
UBS anticipates that MSCI’s stock could see an upward trend as sales and run rate growth pick up pace, a development they expect to begin in the first quarter. The firm’s confidence in MSCI’s growth trajectory is bolstered by the company’s strategic moves to expand its client base and product offerings, which could lead to increased revenue streams.
MSCI’s positive momentum is attributed to its solid pricing power and the potential for asset reallocation trends that favor global investment strategies. These factors, combined with the company’s active start to the year, lay the foundation for UBS’s optimistic outlook on the stock’s future performance.
In other recent news, MSCI Inc. reported its fourth-quarter 2024 earnings with an adjusted EPS of $4.18, surpassing analyst expectations of $3.96. However, the company’s revenue slightly missed forecasts, coming in at $743.51 million. Despite the earnings beat, MSCI’s stock experienced pressure due to broader market dynamics and concerns about retention rates. RBC Capital Markets maintained an Outperform rating on MSCI, with a price target of $675, citing optimism about the company’s recovery signs and potential for double-digit growth in net new subscription sales for 2025. Meanwhile, JPMorgan adjusted its price target for MSCI to $680 from $700, maintaining an Overweight rating, following the company’s mixed fourth-quarter performance. The firm noted that while MSCI’s revenues slightly missed expectations, the company exceeded margin estimates and benefited from a lower tax rate. In governance news, MSCI announced that board member Wayne Edmunds will retire at the 2025 Annual Meeting of Shareholders, and the board will be reduced from thirteen to twelve members.
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