Factset Research (FDS – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Toni Kaplan from Morgan Stanley maintained a Sell rating on the stock and has a $393.00 price target.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Toni Kaplan has given his Sell rating due to a combination of factors impacting Factset Research’s performance and outlook. Despite the company achieving better-than-expected organic Annual Subscription Value (ASV) growth in the recent quarter, the growth rate of 4.5% remains below that of its peers. This cautious stance is further influenced by the challenging market environment, which may hinder significant improvements in organic growth.
Additionally, while Factset has reiterated its fiscal year 2025 guidance and seen some positive contributions from international price increases and new generative AI products, these factors have not substantially altered the company’s overall growth trajectory. The stock’s valuation, trading at 18 times adjusted EBITDA, suggests that there are more attractive opportunities elsewhere within the information services sector. Consequently, Kaplan maintains a cautious outlook and a Sell rating on Factset’s stock.
In another report released yesterday, Goldman Sachs also reiterated a Sell rating on the stock with a $422.00 price target.
Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FDS in relation to earlier this year.