Raymond James lifts FactSet rating on cheaper valuation, signs of revenue rebound
Investing.com -- Raymond James upgraded FactSet Research Systems to Market perform from Underperform, saying the market-data provider’s shares already reflect most of the competitive and budgeting pressures that slowed growth over the past two years.
FactSet’s forward price-to-earnings multiple has slid to about 24 times, near a five-year low and roughly in line with the broader S&P 500, after historically commanding a premium, the brokerage said.
Analysts at RJ see limited further downside risk to FactSet’s valuation multiple given company’s largely recurring revenue, strong client-retention record and modest balance-sheet leverage.
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View Offer Powered by Money.com - Yahoo may earn commission from the links above.The firm also cited an early pickup in Annual Subscription Value (ASV), a key measure of future revenue. Organic ASV growth, at constant currency, rose 40 basis points sequentially to 4.5% in FactSet’s fiscal third quarter ended May 31, breaking an eight-quarter deceleration.
Revenue growth improved by a similar amount to 4.4%, and management signalled a healthier sales pipeline heading into the fourth quarter.
Even so, Raymond James said spending constraints among investment-management clients and fiercer competition from London Stock Exchange (LON:LSEG) Group’s Refinitiv unit are likely to cap upside in the near term.
Budget pressures “will continue to limit revenue and ASV growth upside,” Raymond James analyst added.
Past increases in capital expenditures, including investments in generative-AI tools, have knocked about two percentage points off operating margins this fiscal year, but the brokerage expects that drag to “mostly abate in FY26” as capex levels off.
Raymond James left its earnings estimates unchanged, saying risk and reward now look “relatively balanced” after the stock’s de-rating.
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这篇报道表明，Raymond James因FactSet估值更低以及营收回升的迹象而上调其评级，这一举动体现了市场对 FactSet 快速恢复增长潜力的乐观预测和认可度提高的趋势(Direction of optimism regarding fast growth potential and increased recognition attributed to Raymond...)
Raymond James upgrading FactSet's rating due to its more attractive valuation and the indication of revenue recovery, showcases their optimistic outlook on this stock despite short-term market pressures.
Analysts at Raymond James upgraded FactSet'S stock rating based on its cheaper valuation and emerging signs of a revenue rebound, signaling potential growth for the company in an otherwise stagnant market.
The recent upgrade by Raymond James on FactSet's stock rating due to its cheaper valuation and emerging signs of revenue rebound suggest that the market views this as an attractive investment opportunity with promising prospects for growth.
Raymond James近期上调FactSet的评等至更高水平，基于其更加吸引的投资估值及收入反弹迹象，这一行动凸显了投资者对未来增长潜力的积极态度和对当前市值低估价值的认可度增加的情况之预告也证明了投资者的乐观情绪和对此行业修复信心的上升之势.
Raymond James’s upgrade of FactSet' rating to positive amidst cheaper valuation and emerging signs of revenue rebound underscores its confidence in the potential for growth; yet, investors should maintain a watchful eye on actual progress towards recovery.
