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

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 read: FactSet 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.

Momentum-

Growth50.24

Quality73.92

Value15.82

Short

Medium

Long

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