Analyst Jeffrey Silber from BMO Capital maintained a Buy rating on Morningstar (MORN – Research Report) and keeping the price target at $339.00.
Jeffrey Silber’s rating is based on a combination of factors that highlight Morningstar’s potential for growth and profitability. One of the key reasons for the Buy rating is the strong growth in assets under management and advisement (AUMA) in their Wealth and Retirement segments, which saw increases of 20% and 12% respectively in FY2024. This growth is attributed to both market performance and net inflows, indicating a robust demand for Morningstar’s offerings in these areas.
Additionally, Silber points out the potential for margin expansion and earnings per share (EPS) growth, driven by Morningstar’s diverse business segments and valuable assets like PitchBook. Despite some challenges in the Data and Analytics segment, which experienced slowing growth, the overall diversity and strength of Morningstar’s business model present a compelling investment opportunity. Furthermore, the company’s unique approach to investor relations and concentrated founder ownership are seen as factors that have kept it under the radar, suggesting potential for future recognition and valuation increases.
Silber covers the Industrials sector, focusing on stocks such as Robert Half, Trueblue, and ManpowerGroup. According to TipRanks, Silber has an average return of 7.8% and a 58.25% success rate on recommended stocks.