MSCI

MSCI (MSCI) is a quality business at a discount, with the recent stock pullback already pricing in an “unlikely worst-case scenario” and the company is likely to see upside support from buybacks, BofA Securities said in a note Tuesday. BofA said it expects multiple expansions as investors are likely to be attracted to a high-quality long-term growth story at a discount. The company’s shares derated after it reported heavy Q1 cancellations, which management “indicated was a one-off event and bad timing,” the note said. “We think the business is in better shape than valuation reflects, although slowing ESG sales and weak near-term Index subscription growth will cap upside,” BofA said, adding it expects $425 million of buybacks this year “with room for upside.” “At a 7% discount to peers, MSCI shares are likely to attract incremental investor interest, in our view,” the note said. “MSCI is a double-digits EPS compounder […]

MSCI Reports Financial Results for First Quarter 2024 NEW YORK–(BUSINESS WIRE)–April 23, 2024– MSCI Inc. (“MSCI” or the “Company”) (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, today announced its financial results for the three months ended March 31, 2024 (“first quarter 2024”). Financial and Operational Highlights for First Quarter 2024 (Note: Unless otherwise noted, percentage and other changes are relative to the three months ended March 31, 2023 (“first quarter 2023”) and Run Rate percentage changes are relative to March 31, 2023). — Operating revenues of $680.0 million, up 14.8%; Organic operating revenue growth of 10.3% — Recurring subscription revenues up 15.2%; Asset-based fees up 12.9% — Operating margin of 49.9%; Adjusted EBITDA margin of 56.4% — Diluted EPS of $3.22, up 8.4%; Adjusted EPS of $3.52, up 12.1% — Organic recurring subscription Run Rate growth of 8.7%; Retention Rate

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We decrease our target price by $165 to $465, 27.4x our 2025 EPS estimate, a discount to MSCI’s 10-year forward P/E average of 36.4x given reduced growth prospects and slowing sales. We lower our 2024 EPS view by $0.22 to $14.93 and cut 2025’s by $0.20 to $17.00. MSCI posted Q1 adjusted EPS of $3.52 vs. $3.14, a $0.05 consensus beat. All eyes were on MSCI’s retention rate as it fell 240 bps to an uncharacteristically low level of 92.8%. Although disappointing, we expect improvement in upcoming quarters as a large portion of the decline was out of MSCI’s control and related to the large Swiss bank merger. MSCI’s Index segment (55% of run-rate) continued to perform well as 12% growth was driven by market appreciation, while

The following is a summary of the MSCI Inc. (MSCI) Q1 2024 Earnings Call Transcript: Financial Performance: MSCI reported Q1 2024 revenue growth of 10%, adjusted EPS growth of 12%, and free cash flow growth of 14%. Asset-Based Fee (ABF) revenue saw a 13% increase due to record AUM balances in both ETFs and non-listed products linked to MSCI indices. Non-recurring sales were up by 16%, although changes in market volatility and interest rate expectations had a lingering impact on Q1 results. Revenue decline was partly due to fewer price increases within new subscription sales, offset slightly by increased cross-selling/upselling to existing clients. Business Progress: There was significant growth in analytics with high Q1 sales, particularly among hedge funds and asset owners. APAC and EMEA regions principally drove a 39% climate run-rate growth across product lines but ESG run-rate growth stabilized at 12% amid complications in the Americas. The acquisitions

MSCI’s (MSCI) Q1 results could modestly beat estimates on the back of asset based fees, or ABF, strength, RBC Capital Markets said in an earnings preview emailed Monday. The firm said it was modeling a 15% year-over-year increase in Q1 ABF, roughly in line with the 15.9% posted last quarter. However, RBC said it was conservatively estimating Q1 revenue of $682 million, in line with consensus. Meanwhile, net new subscriptions should rise single digit year-over-year after declining for the last five quarters, the note said. RBC Capital has an Outperform rating on the company’s stock with a price target of $638. MSCI shares were up 1% in recent Monday trading.

Goldman Sachs analyst George Tong maintains MSCI (NYSE:MSCI) with a Neutral and raises the price target from $544 to $617.

MSCI (NYSE:MSCI) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/31/2024 18.44% Barclays $600 → $700 Maintains Overweight 01/08/2024 1.69% Oppenheimer $572 → $601 Maintains Outperform 01/05/2024 — Raymond James Downgrades Outperform → Market Perform 12/13/2023 1.52% Morgan Stanley $526 → $600 Upgrades Equal-Weight → Overweight 11/01/2023 -3.55% RBC Capital → $570 Reiterates Outperform → Outperform 11/01/2023 1.52% Barclays $650 → $600 Maintains Overweight 11/01/2023 -11% Morgan Stanley $532 → $526 Maintains Equal-Weight 11/01/2023 -9.82% Raymond James $577 → $533 Maintains Outperform 10/18/2023 1.52% JP Morgan $610 → $600 Maintains Overweight 10/05/2023 3.72% Oppenheimer $620 → $613 Maintains Outperform 09/14/2023 -6.26% Redburn Partners → $554 Downgrades Buy → Neutral 07/27/2023 -1.52% Goldman Sachs $510 → $582 Maintains Neutral 07/26/2023 -9.98% Morgan Stanley $515 → $532 Maintains Equal-Weight 07/26/2023 -7.78% RBC Capital → $545 Reiterates Outperform → Outperform 07/26/2023 8.29% Wells Fargo $570

Barclays analyst Manav Patnaik maintains MSCI (NYSE:MSCI) with a Overweight and raises the price target from $600 to $700.

Oppenheimer Raises MSCI Price Target to $659 From $601, Maintains Outperform Rating.

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

MSCI Reports Financial Results for Fourth Quarter and Full Year 2023 NEW YORK–(BUSINESS WIRE)–January 30, 2024– MSCI Inc. (“MSCI” or the “Company”) (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, today announced its financial results for the three months ended December 31, 2023 (“fourth quarter 2023”) and full year ended December 31, 2023 (“full year 2023”). Financial and Operational Highlights for Fourth Quarter 2023 (Note: Unless otherwise noted, percentage and other changes are relative to the three months ended December 31, 2022 (“fourth quarter 2022”) and Run Rate percentage changes are relative to December 31, 2022). — Operating revenues of $690.1 million, up 19.8%; Organic operating revenue growth of 14.7% — Recurring subscription revenues up 16.8%; Asset-based fees up 15.9% — Operating margin of 53.7%; Adjusted EBITDA margin of 60.1% — Diluted EPS of $5.07, up 89.9%; Adjusted EPS of $3.68,

Full-Year 2024 Guidance MSCI’s guidance for the year ending December 31, 2024 (“Full-Year 2024”) is based on assumptions about a number of factors, in particular related to macroeconomic factors and the capital markets. These assumptions are subject to uncertainty, and actual results for the year could differ materially from our current guidance, including as a result of the uncertainties, risks and assumptions discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K, as updated in quarterly reports on Form 10-Q and current reports on Form 8-K filed or furnished with the SEC. See “Forward-Looking Statements” below. Guidance Item Guidance for Full-Year 2024 Operating Expense $1,300 to $1,340 million Adjusted EBITDA Expense $1,130 to $1,160 million Interest Expense (including amortization of financing fees)(1) $185 to $189 million Depreciation & Amortization Expense $170 to $180 million Effective