William Blair analyst Andrew Nicholas has reiterated their neutral stance on FDS stock, giving a Hold rating on June 16.
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Andrew Nicholas has given his Hold rating due to a combination of factors, primarily centered around FactSet Research’s recent financial performance and future outlook. The company’s fiscal third-quarter revenue exceeded expectations, but higher-than-anticipated expenses led to slight misses in adjusted operating income and margin, as well as a shortfall in adjusted EPS compared to estimates. Despite these mixed results, management’s reaffirmation of its full-year outlook and positive commentary on renewals and new business momentum contributed to a positive market reaction.
Management’s confidence in achieving full-year organic ASV guidance is bolstered by a strong fourth-quarter sales pipeline, largely driven by institutional buy-side clients. Additionally, demand for data solutions and performance services is expected to contribute positively in the upcoming quarter. While Wealth and Banking sectors showed promising growth and retention, the overall steady macroeconomic environment and consistent client demand provide a balanced perspective, justifying the Hold rating.
In another report released on June 16, Evercore ISI also maintained a Hold rating on the stock with a $448.00 price target.