UPDATE: Goldman Sachs Reiterates Sell Rating, Raises PT on FactSet Research Systems Ahead of Tuesday Earnings Report

In a report published Monday, Goldman Sachs analyst Brian Karimzad reiterated a Sell rating on FactSet Research Systems

, and raised the price target from $79.00 to $81.00. In the report, Karimzad noted, “FactSet (FDS) reports FY2Q13 results next Tue, 19th March. For the quarter, we expect revenues of $212mn and annual subscription value (ASV) of $850mn. We think organic ASV growth in 2Q will decelerate to 6% yoy from 7% in 1Q as (a) sell-side clients continue to cut costs and (b) demand from buy-side clients remain muted as new funds creation is still slow despite some recent pick up in new equity fund flows. For 3Q we see revenue guidance of about 7% yoy growth with consistent pricing power tempering decelerating volume. We raise our FY13/14/15 EPS to $4.50/$4.83/$5.28 from $4.40/$4.80/$5.26 on the R&D tax credit and pricing adjustments. Remain Sell rated; we think the current 22x P/E contemplates a more rapid return to double-digit revenue and EPS growth than the more muted high-single-digit growth we expect through next year.” FactSet Research Systems closed on Friday at $99.29.