Redburn Atlantic analyst Russell Quelch downgraded Morningstar to Neutral from Buy with an unchanged price target of $340. The company’s licenced-based revenue growth has decelerated to its slowest pace since 2019, while its productivity levels screen as low versus peers, the analyst tells investors in a research note. The firm believes management needs to refocus on investments to reinvigorate recurring revenue growth and improve returns. Redburn is cautious in recommending the stock to investors as the business enters a potential period of reinvestment which will weigh on free cash flow and returns.
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