MSCI price target lowered to $588 from $631 at Evercore ISI

Evercore ISI lowered the firm’s price target on MSCI (MSCI) to $588 from $631 and keeps an Outperform rating on the shares. The firm says MSCI’s Q5 results were a letdown, with disappointing sub run rate growth and a reduced forward outlook. The anticipated boost from higher equity markets didn’t materialize, and MSCI’s expectation of a positive mid-single-digit sub growth from traditional Asset Managers seems unlikely to improve soon, Evercore adds. Despite asset flows out of the U.S., the company isn’t seeing the anticipated uptick in growth, which is a concern given the saturation in its end markets and flat sub run rate yield on AUM since 2022.