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Research Alert: CFRA Reduces Opinion On Shares Of Factset Research Systems To Hold From Buy
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Research Alert: CFRA Reduces Opinion On Shares Of Factset Research Systems To Hold From Buy
Sep 21, 2025 1:27 AM

09:15 AM EDT, 09/19/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target price by $190 to $350, at 19.9x our FY 26 (Aug.) EPS estimate, lower than the company's 10-year historical average of 27.0x. We lower our FY 26 adjusted EPS by $1.30 to $17.58 and start FY 27's at $18.71. We reduce our opinion to Hold due to concerns that margin pressures will persist longer than previously anticipated. FDS must continue heavy investments in AI solutions to avoid losing market share, but we have become more conservative in our view about the revenue impact of these investments. Client budget constraints are creating headwinds through extended sales cycles and declining deal volume. Additionally, we expect tight budget constraints will make it more difficult for FDS to implement price increases on existing clients, further pressuring revenue growth upside potential. Despite these challenges, we still expect solid fundamentals, with FDS delivering record EPS and revenue in both FY 26 and FY 27, though growth will likely be slower than it has been historically.

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