FactSet Is Navigating Financial Sector Pressures With Aggressive Pricing And Margin Expansion, Analyst Weighs In

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  • BMO Capital Markets analyst Jeffrey M. Silber initiates coverage on FactSet Research Systems Inc FDS at Market Perform at a price target of $424.
  • The analyst believes FDS' subscription-based model and expansion into a moderately stable wealth industry shields it against cyclicality and can drive market share gain in the future.
  • Also, Silber sees the aggressive price increases in recent years with management's focus on margin expansions as a growth catalyst.
  • However, the analyst cites ongoing pressure in the financial sector as a matter of concern, with AUM reductions, constrained budgets and headcount cuts in the industry. 
  • The analyst expects revenues and adjusted EPS of $2.09 billion and $14.64 (consensus: $14.90) for 2023 and $2.23 billion and $16.21 (consensus: $16.44), respectively, for 2024. 
  • Also readFactSet Slashes FY23 Topline Outlook After Mixed Q2 Results
  • Price Action: FDS shares are trading lower by 0.13% at $397.83 on the last check Monday.
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