MSCI Unveils AI Asset Classifier Might Change The Case For Investing In MSCI (MSCI)

• Earlier this week, MSCI introduced MSCI PACS, a proprietary AI-powered asset classification system designed to bring greater structure and transparency to private markets, covering assets from private companies to infrastructure worldwide.
• This move draws on MSCI's heritage in setting industry standards for public markets and extends it to private assets, signaling an effort to address the growing demand for standardized analysis and benchmarking in the private investment space.
• We'll explore how MSCI PACS could strengthen MSCI's position in private markets and influence its long-term investment story.

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MSCI Investment Narrative Recap

To own MSCI, you need to believe in its long-term relevance as a provider of essential indexing, analytics, and data for global asset allocators, as well as its ability to expand into new markets like private assets. The launch of MSCI PACS may help differentiate MSCI in private markets and capture new data-driven revenue streams, but it is not expected to materially shift the biggest near-term catalyst, which remains continued ETF flows, nor does it lessen the key risk of slowing growth among traditional active asset manager clients.

The most relevant recent announcement is the introduction of MSCI PACS itself, which follows a series of private markets product launches throughout 2025, such as the Private Credit Factor Model. These moves illustrate MSCI's ongoing focus on transparency and analytics in private investments, potentially supporting subscription growth outside traditional client segments.

However, investors should keep in mind that while MSCI moves deeper into private markets, challenges around data-sharing and reliance on third-party private data could...

Read the full narrative on MSCI (it's free!)

MSCI's outlook anticipates $3.8 billion in revenue and $1.6 billion in earnings by 2028. This is based on a projected 8.5% annual revenue growth rate and a $400 million increase in earnings from the current $1.2 billion.

Uncover how MSCI's forecasts yield a $623.81 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community have estimated MSCI’s fair value between US$506 and US$686 per share. With new products like MSCI PACS expanding the addressable market, some see more opportunity while others remain cautious about risks to long-term subscription growth, see how your own view compares to these diverse opinions.

Explore 7 other fair value estimates on MSCI - why the stock might be worth 11% less than the current price!

Build Your Own MSCI Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your MSCI research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free MSCI research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate MSCI's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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