Wells downgrades FactSet as market volatility puts reacceleration at risk

As previously reported, Wells Fargo downgraded FactSet (FDS) to Underweight from Equal Weight with a price target of $402, down from $450, after the company reported an ASV miss and guided to a reacceleration, which the firm views at risk given recent market volatility. Wells is also concerned by rising competition and see limited upside to near-term margins. FactSet highlighted stronger visibility into the second half of the year after signing over a dozen large banking renewals, while it doesn’t expect recent market volatility to influence its ability to convert its buyside weighted pipeline. The firm is cautious on the implied magnitude of the re-acceleration, and is less confident in further growth acceleration into FY26.