FactSet price target lowered to $228 from $307 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on FactSet (FDS) to $228 from $307 and keeps an Equal Weight rating on the shares following Q4 results. Greater than expected annual subscription value growth is a positive sign for business acceleration amid AI pressure, though impact of increased investments on margin weighed on operating profit, the firm told investors in a research note. Morgan Stanley added that the new price target is the midpoint of its base case and bear case valuation as overall AI sentiment and expected accelerated spend offer some evidence that its bear case of AI disruption resulting in accelerated spend to drive growth has a higher probability of being played out.