FactSet: Solid Recurring Growth Offset by Margin Pressures Warrants Hold Rating

Analyst Toni Kaplan of Morgan Stanley maintained a Hold rating on Factset Research, with a price target of $228.00.

Toni Kaplan has given his Hold rating due to a combination of factors, balancing solid demand indicators with profitability headwinds. FactSet’s recurring ASV growth continues to accelerate and beat expectations, helped by stronger client retention, higher content pricing, and rising adoption of real-time data, AI-enabled tools, and private markets datasets.

At the same time, management is deliberately reinvesting much of this growth back into the business, which is suppressing operating margins versus forecasts. Higher compensation, technology, and cloud infrastructure spending, along with unchanged margin guidance despite a higher ASV outlook, limit near‑term earnings leverage and justify maintaining an Equal‑Weight stance and a lower price target rather than a more constructive rating.

According to TipRanks, Kaplan is a 3-star analyst with an average return of 0.8% and a 52.14% success rate. Kaplan covers the Industrials sector, focusing on stocks such as Equifax, Verisk Analytics, and Andersen Group, Inc. Class A.