On Wednesday, Morgan Stanley (NYSE:MS) adjusted its price target for MSCI Inc . (NYSE:MSCI), a provider of critical decision support tools and services for the global investment community, reducing it to $615 from the previous $671. Despite the revision, the firm maintained its Overweight rating on the stock.
The adjustment follows a period of consolidation among large banks and challenging market conditions that have affected key performance indicators (KPIs) for MSCI. The analyst from Morgan Stanley noted that these factors have had an impact, but there is a belief that the first quarter will represent the lowest point for the company's performance.
MSCI's stock experienced a significant intra-day drop of 14%, which the analyst deemed excessive. In response to the market situation, Morgan Stanley has made a slight revision to MSCI's adjusted EBITDA forecasts, with a 1% decrease for 2024 and a 2% decrease for 2025.
The firm's stance remains positive on MSCI's prospects, reiterating the Overweight rating. The new price target of $615 reflects the firm's updated expectations in light of recent developments and the anticipated recovery from the current low. The Overweight rating suggests that Morgan Stanley continues to see MSCI as a favorable investment compared to its peers in the market.
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