Evercore Begins Coverage of MSCI with Outperform Rating

A recent report indicates that Evercore ISI has initiated coverage of MSCI, issuing an Outperform rating with a modest price target upside. The projected revenue growth and EPS reflect a stable outlook, while fund sentiment suggests mixed institutional interest.

Date: 03-10-2024

AI Rating: 6

The report highlights that Evercore ISI has initiated coverage of MSCI with an Outperform recommendation. Analysts forecast a price increase of 3.06% from its current price of $590.19 per share, estimating an average year-end price of $608.23. This indicates a positive outlook, although modest.

Additionally, the projected annual revenue for MSCI is expected to be $2,777 million, showing a revenue growth of 2.72%. This increase suggests stability in revenue, which is favorable for investors. Furthermore, the projected non-GAAP Earnings Per Share (EPS) is $15.00. This EPS projection is essential as it gives insight into the company’s profitability and earnings potential.

Despite these positive indicators, the analysis of fund sentiment shows a complex picture. There are 1,885 funds with positions in MSCI, but the total number of shares owned by institutions has decreased by 1.65% in the last three months. This could imply a slight decrease in confidence among institutional investors, even as certain funds have increased their holdings. For instance, Edgewood Management and Geode Capital Management both increased their shares, while others, like Vanguard, decreased their holdings.

Moreover, the put/call ratio is currently at 1.37, which indicates a bearish outlook in the options market. This could further reflect uncertainty or caution among investors regarding MSCI's near-term performance.

While MSCI's revenue growth, projected EPS, and Evercore's Outperform rating suggest potential positivity, the decline in institutional shares and bearish options sentiment could negatively affect stock performance. Investors should be mindful of these mixed signals moving forward.

Stocks: MSCI