BofA Securities Upgrades MSCI Inc. (MSCI) to Neutral, 'Valuation was Expensive'

BofA Securities analyst Heather Balsky upgraded MSCI Inc. (NYSE: MSCI) from Underperform to Neutral with a price target of $525.00 (from $425.00).

The analyst comments "We upgrade to Neutral from Underperform as we think the recent stock price pullback is pricing in an unlikely worst-case scenario and there's pending upside support from buy¬ backs. Shares derated after MSCI reported heavy 1Q cancels, which mgmt indicated was a one-off event and bad timing. We think the business is in better shape than valuation reflects, although slowing ESG safes and weak near-term Index subscription growth will cap upside. Info Svcs peers are trading at a 32% premium to 2018 FY2 multiples (26% ex TRI)r while MSCI is only trading at a 10% premium (at -29x). Our revised $525 PO (from $425) reflects a 31.5x (0.5x premium to peers) and 21% premium to its 2018 multiple."

For an analyst ratings summary and ratings history on MSCI Inc. click here. For more ratings news on MSCI Inc. click here.

Shares of MSCI Inc. closed at $476.98 yesterday.

You May Also Be Interested In

• Berenberg Upgrades Accelleron Industries AG (ACLN:SW) to Buy
• Jefferies Starts Aditya Birla Real Estate (ABREL:IN) at Buy
• Jefferies Downgrades BSE Limited (BSE:IN) to Underperform