On Monday, BMO Capital Markets adjusted its outlook on FactSet Research Systems (NYSE:FDS), a provider of financial information and analytics software to the investment community. The firm's analyst has lowered the price target on the stock to $518 from the previous $521, while the Market Perform rating remains unchanged.
Currently trading at $483.52, the stock sits near its 52-week high of $499.87, with a market capitalization of $18.37 billion. According to InvestingPro data, 12 analysts have recently revised their earnings expectations downward for the upcoming period.
The adjustment follows FactSet's recent earnings report, which revealed a beat on adjusted earnings per share (EPS) driven by stronger margins. The company maintains a healthy gross profit margin of 54.29% and has achieved revenue growth of 5.02% over the last twelve months.
Despite the variability in client budgets, management has noticed an increased readiness among clients to make purchasing decisions. Furthermore, FactSet has reaffirmed its guidance for the fiscal year 2025, which aligns with the higher end of the consensus estimates.
The company is on track to meet its FY2025 targets, but BMO Capital noted that the tone for the second quarter of fiscal year 2025 sounded somewhat more cautious. This observation has led to a slight revision in the firm's estimates and the price target for FactSet's shares. InvestingPro analysis suggests the stock is currently trading at a premium valuation with a P/E ratio of 35.08x, though it maintains a strong track record with 26 consecutive years of dividend payments.
FactSet's performance and outlook are closely watched by investors as indicators of the financial information sector's health and the company's competitive position in the market. The maintenance of the Market Perform rating suggests that the analyst sees the company's stock as fairly valued based on current information.
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