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Based in New York, MSCI Inc. (MSCI) is a prominent global provider of investment decision support tools. Valued at a market capitalization of $46.2 billion, the company is renowned for its wide array of products and services, delivering essential data, analytics, and research to institutional investors globally. MSCI's offerings encompass indexes, portfolio risk and performance analytics, and ESG research, enabling clients to make informed investment choices across diverse asset classes.
Shares of MSCI have underperformed the broader market over the past year. The stock has gained 12.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.3%. In 2024, the stock is up 4.8%, while the SPX has gained 25.5% on a YTD basis.
Narrowing the focus, MSCI has also lagged behind the iShares U.S. Financial Services ETF (IYG), which has soared 49.9% over the past year and 37.4% on a YTD basis.
On Oct. 29, MSCI shares plunged 2.7% after the company reported its third-quarter earnings. Adjusted EPS amounted to $3.86, beating Wall Street expectations. Revenue stood at $724.7 million, surpassing Street’s projections.
For the current fiscal year, ending in December, analysts expect MSCI’s EPS to grow 10.8% to $14.98 on a diluted basis. The company's earnings surprise history is sound. It beat the consensus estimate in all four quarters.
Among the 19 analysts covering MSCI stock, the consensus rating is a “Moderate Buy.” That’s based on ten“Strong Buy” ratings, two “Moderate Buys,” six “Holds,” and one “Strong Sell.”
This consensus is more bullish than two months ago when the stock had eight “Strong Buy” ratings.
On October 30, RBC Capital analyst Ashish Sabadra reiterated a “Buy” rating on MSCI and set a price target of $638.00. The company's shares closed at $578.93 on the same day.
The mean price target of $645.21 represents an 8.9% premium compared to MSCI’s current price levels. The Street-high price target of $700 suggests an upside potential of 18.1%.
