FactSet’s Hold Rating: Balancing Positive Performance with Growth Challenges Amid Market Volatility

William Blair analyst Andrew Nicholas has maintained their neutral stance on FDS stock, giving a Hold rating on March 13.

Andrew Nicholas has given his Hold rating due to a combination of factors including FactSet’s recent financial performance and future outlook. The company’s second-quarter revenue slightly exceeded expectations, and there was a notable improvement in operating income and margins. Despite these positive aspects, the organic ASV growth was below projections, suggesting some challenges in achieving expected growth rates.
Additionally, while FactSet raised its full-year revenue and operating income guidance, the unchanged EPS and operating margin guidance indicate cautious optimism. The company’s recent acquisitions appear to contribute to revenue growth, but the impact on margins remains a concern. Given the current market volatility and macroeconomic uncertainties, Nicholas believes that a Hold rating is appropriate as the company navigates these dynamics while showing potential for ASV growth acceleration in the second half of the year.

In another report released on March 13, Evercore ISI also maintained a Hold rating on the stock with a $470.00 price target.