MSCI (MSCI) Stock Forecast & Price Target

MSCI's stock outlook is reinforced by strong performance metrics, including an 11.1% increase in the index run rate, which reached $1.6 billion as of 4Q24, signaling robust demand for its benchmarking services. The company's organic operating revenue grew by 7.4% year-over-year, with the analytics segment experiencing notable growth of nearly 12% in 3Q24, driven by accelerated implementations. Additionally, MSCI's index subscription revenue rose by 8.4% year-over-year, contributing to a significant 45.8% increase in free cash flow, which reached $394 million in 3Q24.

MSCI has reported a 14.6% year-over-year increase in adjusted EBITDA expenses, reflecting rising operational costs that were higher than both internal and consensus forecasts. The company experienced a 5% year-over-year decline in new recurring subscription sales for asset managers, attributed to cyclical headwinds and pressure on client budgets, which could impede future revenue growth in its Indexes and ESG segments. Additionally, heightened cancellations in the real assets sector and a noted downturn in client spending suggest ongoing challenges that may adversely affect MSCI's financial performance in the short term.