On Friday, BMO Capital Markets adjusted its outlook on FactSet Research Systems Inc. (NYSE:FDS), a provider of financial data and software solutions, by increasing the price target to $458 from $447 while maintaining a Market Perform rating on the stock.
The adjustment followed FactSet's announcement of an adjusted earnings per share (EPS) that surpassed expectations, attributed to the company's disciplined cost management and certain personnel actions. Despite the positive EPS results, FactSet's sell-side Annual Subscription Value (ASV) growth experienced a slight deceleration beyond projections.
The firm's analyst highlighted the company's performance and expectations, stating, "FDS reported an adjusted EPS beat, driven by cost discipline and some personnel actions. Sell-side ASV growth slowed a bit more than expected. While reaffirming FY2024 adjusted EPS guidance (despite the large 'beat'), management now expects revenue growth at lower end of prior range (~5.5%), mildly lower than consensus. F3Q24 is expected to show some weakness with some pickup in activity in F4Q24. We adjust our estimates and price target."
For the third fiscal quarter of 2024, FactSet is preparing for some softness, but expects a resurgence of activity in the fourth quarter. In response to these developments, BMO Capital has revised its estimates for FactSet, leading to the updated price target.
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