NEW YORK (TheStreet) -- UBS increased its price target on FactSet Research Systems (FDS) to $117 and set a "neutral" rating. The firm noted recent acceleration in buy-side hiring and spending on technology played a role in returning to double digit year-over-year growth.
The stock closed at $117 on Tuesday.
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- Despite its growing revenue, the company underperformed as compared with the industry average of 7.5%. Since the same quarter one year prior, revenues slightly increased by 6.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- FDS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, FDS has a quick ratio of 1.83, which demonstrates the ability of the company to cover short-term liquidity needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Software industry and the overall market, FACTSET RESEARCH SYSTEMS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- FACTSET RESEARCH SYSTEMS INC has improved earnings per share by 22.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FACTSET RESEARCH SYSTEMS INC increased its bottom line by earning $4.47 versus $4.14 in the prior year. This year, the market expects an improvement in earnings ($4.95 versus $4.47).
- The net income growth from the same quarter one year ago has exceeded that of the Software industry average, but is less than that of the S&P 500. The net income increased by 17.7% when compared to the same quarter one year prior, going from $44.54 million to $52.43 million.
- You can view the full analysis from the report here: FDS Ratings Report
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