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Is MSCI Stock Underperforming the Dow?
Yahoo Financeยท 2025-09-11 09:56
Company Overview - MSCI Inc. is a leading provider of investment decision support tools, known for its global indexes, risk and portfolio analytics, and ESG/climate solutions, with a market cap of $44 billion [1] - The company operates under four segments: Index, Analytics, ESG and Climate, and All other- Private Assets [1] Market Position - MSCI is categorized as a large-cap stock, with a market cap exceeding $10 billion, reflecting its substantial size and influence in the Financial Data & Stock Exchanges industry [2] - The company benefits from high margins and sticky clients, despite facing risks from market volatility, rising costs, and competition from other index and data providers [3] Stock Performance - MSCI's stock has retreated 12.3% from its 52-week high of $642.45, reached on December 12, 2024, and has grown marginally over the past three months, underperforming the broader Dow Jones Industrial Average's 6.1% rise [3] - Over the past 52 weeks, MSCI shares have risen marginally, underperforming the Dow Jones Industrial Average's 11.7% returns, and are down 6.1% year-to-date compared to the Dow's 6.9% uptick [4] Financial Results - In Q2 2025, MSCI reported strong results with revenue climbing nearly 9% to $772.7 million and adjusted EPS rising 15% to $4.17, both exceeding analyst expectations [5] - Despite the strong financial results, MSCI shares fell about 8.9% as investors focused on weaker net new subscriptions and headwinds in ESG-related growth [5] Analyst Sentiment - Analysts maintain a moderately optimistic outlook for MSCI, with a consensus rating of "Moderate Buy" from 20 analysts and a mean price target of $631.81, implying a premium of 12.2% from current market prices [6]