Analyst Jeffrey Silber from BMO Capital maintained a Buy rating on Morningstar and keeping the price target at $325.00.
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Jeffrey Silber has given his Buy rating due to a combination of factors that highlight Morningstar’s strategic positioning and growth potential. The company’s Direct Platform has shown improved organic growth, particularly in the EMEA and APAC regions, despite challenges faced by U.S. asset managers in terms of cost sensitivity and fee pressure. This growth is supported by investments in Credit Rating, Licensed Data products, and platform enhancements, which are expected to maintain a strong balance sheet.
Additionally, Morningstar’s PitchBook platform is well-positioned with its robust data moat, built on years of infrastructure investment and rigorous data verification processes. Although there is a potential threat from AI in certain client use cases, the company is proactively seeking strategic partnerships to mitigate this risk. The diversity of Morningstar’s business segments and its unique data offerings, alongside the potential for margin expansion and EPS growth, make it an attractive investment opportunity according to Silber.