CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We increase our 12-month target by $140 to $630, 36.6x our 2025 EPS estimate, a slight premium to MSCI’s 10-year forward P/E average of 36.0x. We raise our 2024 EPS view by $0.28 to $15.15 and start 2025’s at $17.20. MSCI posted Q4 adjusted EPS of $3.68 vs. $2.84, a $0.39 consensus beat. It was a strong quarter for MSCI as strong financial markets led to 12% growth in the Index segment (55% of run-rate). The Analytics segment (+7% and 26% of run-rate) showed improvement as economic uncertainty led to increased demand for MSCI’s risk management tools. MSCI’s retention rate improved 60 bps to 93.6%, while assets under management in equity ETF products linked to MSCI Indices reached an all-time record high of $1.47 trillion. Still, this strength was met with equal expense growth and thus, a relatively flat operating margin of 53.7% (+10 bps). We maintain a Hold rating as MSCI’s crown jewel, its ESG and Climate segment (12% of run-rate), saw organic growth decelerate to 16% (down from 22% in Q3 and 24% in Q2).