Update shared on 15 Nov 2025
Analysts have reaffirmed their price target for MSCI at $655.06, citing strong recurring revenue and healthy margins. Recent updates reflect only minor changes to key financial assumptions and acknowledge a moderating revenue growth rate in certain segments.
Analyst Commentary
Analysts' recent evaluations of MSCI highlight a balanced perspective, underscoring both the company's strengths and areas of caution that could influence future performance and valuation.
Bullish Takeaways
- High recurring revenue streams contribute to earnings stability and support a sustained premium valuation for the stock.
- MSCI continues to deliver strong retention rates, reinforcing confidence in the company's client base and long-term growth prospects.
- Healthy profit margins point to effective operational execution and disciplined cost management.
- The overall growth rate, while moderating, remains attractive relative to peers and industry benchmarks.
Bearish Takeaways
- The slowdown in the growth of Sustainability products has led to a deceleration in total revenue growth, raising questions about near-term momentum.
- Some analysts are waiting for greater clarity or improvement in growth before becoming more constructive on the shares. This suggests caution on immediate upside potential.
- Sustained high valuation multiples may be difficult to maintain if key growth areas do not reaccelerate or outperform expectations.
What's in the News
- MSCI is seeking acquisitions and has launched an offering of senior unsecured notes in a registered public offering. Proceeds are intended for general corporate purposes including investments and possible share repurchases (Key Developments).
- From July 1, 2025 to September 30, 2025, MSCI repurchased 2,189,289 shares for $1,225.67 million, completing the repurchase of 3,330,219 shares for $1,882.14 million under its buyback program announced in October 2024 (Key Developments).
- The Board of Directors of MSCI authorized a new buyback plan on October 25, 2025 (Key Developments).
- MSCI has launched the Private Credit Factor Model, providing institutional investors with tools to assess and manage risk in private credit assets. This model is expanded from data representing more than 1,500 private capital funds (Key Developments).
- MSCI introduced PACS, a proprietary asset classification framework for private markets, aimed at improving transparency and comparability across diverse private assets (Key Developments).
Valuation Changes
- Consensus Analyst Price Target remains unchanged at $655.06, reflecting stability in core fair value assessments.
- The Discount Rate has risen slightly from 8.34% to 8.42%, indicating a modest adjustment in risk assumptions.
- The Revenue Growth estimate is up marginally, moving from 8.57% to 8.60%.
- Net Profit Margin has increased fractionally, from 42.66% to 42.69%.
- Future P/E projection is virtually flat, ticking up from 32.96x to 32.99x.
Disclaimer
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