MSCI Inc. (MSCI) PT Raised to $600 at Argus
Argus analyst John Eade raised the price target on MSCI Inc. (NYSE: MSCI) to $600.00 (from $520.00) while maintaining a Buy rating.
The analyst comments "Our rating on MSCI Inc. (NYSE: MSCI) is BUY. MSCI is a large-cap financial services company focusing on passive investing, analytics, and ESG and climate-related investing. It has an impressive track record, with double-digit annual growth in both sales and EPS. We expect MSCI to benefit over time from global GDP growth, the increased popularity of passive investment strategies, and the development of ESG and climate-based investing in developed and emerging economies. The company also has opportunities to develop new products and raise margins, and to expand through targeted acquisitions. The balance sheet is clean, and management has a history of focusing on shareholder returns through dividend growth and share buybacks; the most recent dividend hike was 16% in early 2024. On valuation, the shares trade at a premium to the peer group – and while they have rewarded investors over time with above-market and above-peer-average returns, they are susceptible to sharp pull-backs on any earnings disappointment. Looking ahead, we expect low double-digit EPS growth, multiple expansion, and share-price appreciation as the company continues to expand in its target markets. Our target price is now $600, up from $520."