UPDATE: Credit Suisse Upgrades MCSI to Outperform; Secular Tailwind, NT Catalysts

Credit Suisse raises its rating on MSCI

from Neutral to Outperform and increases the price target from $38 to $42 to reflect secular tailwinds and near-term catalysts for the company. Credit Suisse says, "We are upgrading the shares of MSCI from Neutral to Outperform. We view the recent weakness stemming from 1Q results as a buying opportunity, as the long-term secular tailwinds behind the story remain intact, while revenue and EPS growth is poised to accelerate in 2H12 and 2013. We believe MSCI is riding the secular wave of growth in int'l equity investing, growth in passive investing and the demand for more robust risk mgmt solutions - which should fuel long-term double digit revenue and EPS growth. Near-term, despite a continued challenging sales environment, earnings are poised to accelerate reflecting easier 2H12 comps, margin expansion, and deleveraging/refinancing benefits." MSCI closed at $35.20 on Wednesday.