FactSet Research Systems (FDS) continues to have a "strong" balance sheet and is well-positioned for acquisitions to further increase annual subscription value, or ASV, Oppenheimer said in a note Friday.
The investment firm said key takeaways from the company's investor day on Thursday included updated medium-term guidance with expectations for ASV growth and margin expansion, an updated total addressable market, and new targets for capital returns and investments.
The company expects ASV growth of mid- to high-single digits through the fiscal year 2028 and adjusted diluted earnings per share growth of high single digits to low double digits, with consistent capital returns, Oppenheimer said.
"Our favorable long-term view is tempered largely by persistent macro-related headwinds that drive client fee pressure, and incremental investments that should weigh on near-term margins," the firm said in the note. "Macro and geopolitical tension provide a new uncertainty on ASV growth prospects. We await signs of sustainable organic ASV acceleration before becoming more constructive."
FactSet's business model, strong track record, and long-term growth potential are highly attractive, the investment firm said, adding that the company's growth drivers such as product innovation, proprietary content, pricing, and excellent customer service, remain strong.
Oppenheimer has a perform rating on FactSet.
Shares of FactSet were down 2.9% in recent trading.
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