FactSet Research Systems' Revised Guidance Reflects Delayed Growth, Yet Analyst Anticipates Share Gains and Margin Expansion
Portfolio Pulse from Nabaparna Bhattacharya
FactSet Research Systems Inc. (NYSE:FDS) received a Market Perform rating from BMO Capital Markets analyst Jeffrey M. Silber, with a raised price target of $447. FDS reported a 7.4% Y/Y sales growth for Q1 FY24, slightly above consensus. However, FY2024 guidance was revised down by 1% due to pricing pressure, higher erosion, and delayed client decision-making. Despite this, the analyst expects FDS to continue gaining market share and anticipates future margin expansion. The FY24 revenue estimate was lowered to $2.203 billion. FDS shares rose by 0.79% to $452.18.
December 20, 2023 | 8:05 pm
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FactSet's Q1 FY24 sales growth exceeded expectations, but FY24 guidance was lowered. Analysts see potential for market share gains and margin expansion despite near-term headwinds.
While the revised FY24 guidance indicates potential short-term challenges, the analyst's positive outlook on market share and margin expansion, along with the slight increase in stock price, suggests a neutral to slightly positive short-term impact on FDS shares.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100