UPDATE: Morgan Stanley Reiterates on Verisk Analytics on Buying Opportunity After Soft Q4

In a report published Thursday, Morgan Stanley analyst Suzanne E. Stein reiterated an Overweight rating on Verisk Analytics VRSK, but lowered the price target from $74.00 to $73.00. In the report, Morgan Stanley noted, “Shares fell on slowing insurance revenue growth and flat margins in Risk Assessment, but we see this as a buying opportunity. Healthcare and Specialized markets improved after negative commentary last quarter, but Insurance (in Decision Analytics) is an open question for 2014. Despite the deceleration in this segment to 7.3% y/y in Q4 from the 8-9% level earlier in the year, we believe revenue should accelerate in F14 due to cross-selling, a healthier P&C market, and eventual synergies from the EVT deal. Furthermore, we expect healthcare margins will improve as it scales. We trimmed our EPS forecast and price target to reflect the sale of Interthinx and the Insurance slowdown, and maintain an Overweight rating.” Verisk Analytics closed on Wednesday at $63.78.