FactSet upgraded to Outperform from Neutral at Credit Suisse

Credit Suisse analyst Kevin McVeigh upgraded FactSet to Outperform from Neutral with a price target of $500, up from $485, citing the 20% pullback in the shares on concerns of a more challenging environment. The analyst now sees potential multiple expansion with its pivot to the cloud, deleveraging to 2-2.5-times from 3.9-times, $75M of cost levers, and ability to resume $180M-plus in buybacks in the second half of 2023. McVeigh further notes that the market isn’t fully discounting the cloud-native ecosystem FactSet has enhanced with $100M in investments. This is driving a data differentiation strategy-private market and AI structure collecting and APIs/personalization, he adds.