12:37 PM EDT, 06/03/2024 (MT Newswires) -- FactSet Research Systems ( FDS ) is likely to miss estimates by analysts for annual subscription value in fiscal Q3. potentially leading to lower ASV growth guidance in the full year, Morgan Stanley said Monday in a report.

The company "continues to face challenging end market conditions with tight budgets, clients delaying sales and cost pressures leading to decelerating client headcount," Morgan Stanley said.

ASV growth decelerated in the past six quarters and headwinds to fiscal Q3 include the potential impact of the merger of UBS (UBS) and Credit Suisse (CS), the report said. For the full year, Morgan Stanley said its new ASV growth expectation for the company is 13% below consensus and 9% below FactSet's guidance.

FactSet is set to release its fiscal Q3 results on June 21.

Morgan Stanley cut its price target on FactSet stock to $350 from $372 and reiterated its underweight rating.

FactSet shares fell 2% in recent Monday trading.

Price: 396.21, Change: -8.05, Percent Change: -1.99