Factset Research: Sell Rating Amid Market Volatility and Leadership Transition

Wells Fargo analyst Jason Haas CFA reiterated a Sell rating on Factset Research (FDS – Research Report) today and set a price target of $402.00.

Jason Haas CFA has given his Sell rating due to a combination of factors impacting Factset Research’s outlook. The company’s earnings expectations for FY25 have been slightly lowered due to increased market volatility since their last report. There is a concern that Factset may not meet the anticipated ASV growth in the latter half of the fiscal year, and the new CEO, Sanoke Viswanathan, might provide conservative guidance for FY26 during the upcoming earnings call.
Additionally, while Factset’s new AI products show promise, there are concerns about the pace of adoption due to clients’ risk and compliance issues. The company also faces challenges from budget pressures and competition, particularly as asset managers face fee pressures and market data providers remain highly competitive. Despite these challenges, there is potential for Factset to leverage AI for long-term growth, but the current market conditions and leadership transition contribute to the near-term uncertainty, justifying the Sell rating.

According to TipRanks, Haas CFA is a 5-star analyst with an average return of 12.2% and a 61.22% success rate.

In another report released on June 3, Morgan Stanley also reiterated a Sell rating on the stock with a $390.00 price target.