BMO Capital analyst Jeffrey Silber maintained a Buy rating on Morningstar (MORN – Research Report) today and set a price target of $370.00.
Jeffrey Silber has given his Buy rating due to a combination of factors that highlight Morningstar’s strategic initiatives and growth potential. The recent enhancement of the Direct Advisory Suite is a significant development, as it expands the company’s client base and offers improved functionality and connectivity. This initiative, along with a strategic partnership with SS&C’s Black Diamond Wealth platform, positions Morningstar to capitalize on value-based pricing opportunities and potentially increase renewal rates.
Additionally, Morningstar’s approach to mergers and acquisitions focuses on enhancing existing business areas, as demonstrated by recent acquisitions in private credit monitoring and data technologies. The company’s proactive stance on AI integration and its efforts to differentiate its data offerings further support its growth prospects. Despite regulatory challenges in the ESG space, Morningstar’s diverse business segments and valuable assets, such as PitchBook, present a compelling case for margin expansion and earnings growth, making it an attractive investment opportunity.