MSCI Inc. (MSCI), headquartered in New York, provides critical decision support tools and solutions to help the investment community manage investment processes around the world. Valued at $41.8 billion by market capitalization, the company produces risk and return portfolio analysis and indices to manage investment portfolios.
Shares of this leading provider of indices and investment decision support tools have underperformed the broader market over the past year. MSCI has fallen 6.1% during this period, while the broader S&P 500 index ($SPX) has risen almost 12.3%. In 2025, MSCI shares fell 7.2%, compared to the SPX’s rise of 12.5% ​​on a year-over-year basis.
To narrow the focus, MSCI’s underperformance is also evident in comparison to the iShares US Broker-Dealers & Securities Exchanges ETF (IAI). The exchange-traded fund has gained about 12.7% over the past year. Additionally, the ETF’s 17.3% year-to-date gains dwarf the stock’s single-digit losses over the same time period.
On October 28, MSCI shares closed up more than 8% after reporting its third-quarter results. Its adjusted EPS of $4.47 beat Wall Street expectations of $4.37. The company’s revenue was $793.4 million, missing Wall Street forecasts of $799.2 million.
For the current fiscal year, which ends in December, analysts expect MSCI’s EPS to grow 13.2% to $17.21 on a diluted basis. The company’s track record of earnings surprises is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 19 analysts covering MSCI shares, the consensus is a “moderate buy.” This is based on 12 “Strong Buy” ratings, three “Moderate Buys,” three “Holds,” and one “Strong Sell.”
This setup is less bullish than a month ago, with 13 analysts suggesting a “strong buy.”
On October 29, Evercore ISI analyst David Motemaden maintained a “Buy” rating on MSCI and set a price target of $655, implying a potential upside of 17.6% from current levels.
The average price target of $653.06 represents a 17.3% premium to current MSCI price levels. The Street’s high price target of $710 suggests a notable upside potential of 27.5%.
On the date of publication, Neha Panjwani had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com