/MSCI%20Inc%20magnified%20website-by%20Mehaniq%20via%20Shutterstock.jpg)
Headquartered in New York, MSCI Inc. (MSCI) is a global leader in investment decision support tools, with a market cap of $45.60 billion. It is known for its comprehensive range of products and services. MSCI provides critical data, analytics, and research to institutional investors worldwide. The company’s offerings include indexes, portfolio risk and performance analytics, and environmental, social, and governance (ESG) research, empowering clients to make informed investment decisions across various asset classes.
Shares of MSCI have significantly underperformed the broader market over the past year. The stock has gained 8.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.5%. In 2024, the stock is up 1.8%, while the SPX has gained 17.8% on a YTD basis.
Narrowing the focus, MSCI's underperformance is evident when measured against the iShares U.S. Financial Services ETF (IYG). The exchange-traded fund has gained 17.3% on a YTD basis.
MSCI reported Q2 earnings on Jul. 23. The company reported a profit of $266.80 million, or $3.64 per share, surpassing Wall Street expectations of $3.56 per share. Also, the company's revenue of $707.90 billion exceeded analysts’ estimates of $697.70 billion. Following the release of its results, the stock gained 7.9%.
For the current fiscal year, ending in December, analysts expect MSCI’s EPS to grow 9.4% to $14.79 on a diluted basis. The company's earnings surprise history is impressive. It beat the consensus estimate in all four quarters.
Among the 17 analysts covering MSCI stock, the consensus rating is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, two “Moderate Buys,” eight “Holds,” and one “Strong Sell.”
On Jul. 24, J.P. Morgan analyst Alexander Hess maintained a “Buy” rating on MSCI, with a price target of $620, which indicates a 7.7% upside from the current levels.
The mean price target of $592.85 represents a 3% premium compared to MSCI’s current price levels. The Street-high price target of $650 suggests an upside potential of 12.9%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
