Stock market today: S&P 500 ekes out gain as Trump says open to deals on tariffs
NEW YORK - MSCI Inc. (NYSE:MSCI), a $44.5 billion market cap index provider with impressive 82% gross margins and strong revenue growth of nearly 12% over the last twelve months, announced Tuesday it will extend its consultation on potentially reclassifying Bulgaria from Standalone to Frontier Market status, with a decision to be announced in its 2026 Market Classification Review. According to InvestingPro analysis, MSCI appears to be trading above its Fair Value, reflecting investor confidence in its market leadership position.
The index provider cited feedback from international institutional investors who identified limited market liquidity, insufficient market information, and underdeveloped trading infrastructure as accessibility issues in Bulgaria’s market. The timing of Bulgaria’s Eurozone accession was also noted as a key factor in determining appropriate reclassification timing. InvestingPro data reveals MSCI’s strong business fundamentals, with 11 consecutive years of dividend increases and consistent profitability, supporting its authority in market classification decisions.
MSCI is continuing to monitor South Korea’s market accessibility following recent reforms. These include granting Registered Foreign Institutions access to the onshore interbank forex market since January and extending trading hours. The company is evaluating whether these measures effectively replicate the fully operational offshore FX markets typical of Developed Markets.
The review also noted improvements in Greece’s market accessibility, particularly in clearing and settlement, stock lending, and short selling. However, Greece did not meet newly introduced size and liquidity persistency requirements for potential reclassification to Developed Market status.
For Bangladesh, MSCI reported that floor prices have been removed for all but two securities, and previously low liquidity in the onshore FX market has improved. The company will continue applying special treatment introduced in February 2023 to mitigate concerns about index replicability.
"MSCI is committed to ensuring that our market classifications reflect the evolving realities of global accessibility and investability," said Raman Aylur Subramanian, Head of Index R&D at MSCI, in the press release statement.
The company will continue accepting feedback on Bulgaria’s potential reclassification until March 31, 2026.
In other recent news, MSCI Inc. reported strong first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $4.00, compared to the forecasted $3.93. The company achieved organic revenue growth of 10%, with total revenue slightly exceeding projections at $745.83 million. Fitch Ratings affirmed MSCI’s Long-Term Issuer Default Rating at ’BBB-’ with a Stable Outlook, highlighting the company’s excellent operating performance and strong free cash flow. UBS maintained a Buy rating on MSCI, with a price target of $655, citing optimism from the company’s management and future growth potential in custom indices and climate-related products.
Additionally, MSCI’s shareholders approved executive compensation and the 2025 Omnibus Incentive Plan during the annual stockholders meeting. The meeting also saw the re-election of all board members and the ratification of PricewaterhouseCoopers LLP as the independent auditor for fiscal year 2025. Meanwhile, MSCI’s first-quarter performance demonstrated resilience, with high client retention rates and a focus on innovation, particularly in private assets and climate risk segments. Despite some market uncertainties, MSCI maintained its full-year guidance, supported by strategic initiatives and a diversified product portfolio.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.