12:15 PM EDT, 04/24/2024 (MT Newswires) -- MSCI ( MSCI ) is likely faced with an increased risk of a downward earnings revision following an "underwhelming" Q1 performance, Oppenheimer said in a note.

"It was one of the most underwhelming quarters (first take) in all our time covering MSCI ( MSCI )," Oppenheimer analysts Owen Lau and Guru Sidaarth said. "A quarter doesn't make a trend, but the slowdown outside of ESG and Climate is noticeable."

On Tuesday, the company reported Q1 operating revenue of $680 million, falling short of Oppenheimer's $693 million estimate.

"Given that the run rate growth of key emerging opportunities (i.e., ESG, Climate, Wealth Management and Insurance) has been decelerating, we now expect both Index and ESG and Climate run rate growth to slow down over the next few quarters," the analysts said.

Oppenheimer downgraded its rating on the MSCI ( MSCI ) stock to perform from outperform and removed its $648 price target.

"Our downgrade is predicated upon increased risk of downward earnings revision," the analysts said.

The company's shares were up almost 5% in recent trading.

Price: 467.28, Change: +21.28, Percent Change: +4.77