Yahoo Finance Analysts Have Been Trimming Their MSCI Inc. (NYSE:MSCI) Price Target After Its Latest Report
MSCI Inc. (NYSE:MSCI) shareholders are probably feeling a little disappointed, since its shares fell 8.2% to US$464 in the week after its latest quarterly results. Results were roughly in line with estimates, with revenues of US$680m and statutory earnings per share of US$3.22. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for MSCI
Taking into account the latest results, the most recent consensus for MSCI from 17 analysts is for revenues of US$2.83b in 2024. If met, it would imply a decent 8.2% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to shrink 7.6% to US$13.59 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$2.85b and earnings per share (EPS) of US$13.82 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
With no major changes to earnings forecasts, the consensus price target fell 10% to US$547, suggesting that the analysts might have previously been hoping for an earnings upgrade. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic MSCI analyst has a price target of US$642 per share, while the most pessimistic values it at US$405. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MSCI's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of MSCI'shistorical trends, as the 11% annualised revenue growth to the end of 2024 is roughly in line with the 12% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.7% per year. So it's pretty clear that MSCI is forecast to grow substantially faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on MSCI. Long-term earnings power is much more important than next year's profits. We have forecasts for MSCI going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for MSCI that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
