On Monday, RBC Capital Markets held a steady outlook on MSCI Inc . (NYSE:MSCI), maintaining an Outperform rating and a price target of $675.00.
The firm projected that MSCI's subscription sales across its Index, Analytics, and Private Assets segments are expected to see double-digit growth in the fiscal year 2025. This anticipated increase is attributed to a combination of factors including rising financial services budgets, a strong pipeline of opportunities, positive customer interactions, sales cycles returning to normal, and better price realization.
The analysis also suggests that customer retention rates are likely to improve in 2025 compared to the previous year, as the company moves past the headwinds associated with Credit Suisse (SIX:CSGN) and UBS. MSCI's unique custom index offerings, which include Market Cap, Factor, Thematic, and Sustainability indices, are seen as key drivers for sustained growth within the Indices segment.
The one-year mark since the acquisition of Burgiss is also expected to positively influence MSCI's organic growth in its Private Assets division. Looking ahead to 2025, RBC Capital Markets anticipates high single-digit revenue growth for MSCI and an expansion of over 50 basis points in the company's margins.
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