Update (9:33 a.m.): Updated with Tuesday market open information.
NEW YORK (TheStreet) -- UBS downgraded MSCI (MSCI) to "neutral" from "buy" and set a $46 target price. The firm noted market risk with emerging market exposure, decreasing margins and uncertain payback on new spending.
The stock was down 2.63% to $43.27 at 9:33 a.m. on Tuesday.
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Separately, TheStreet Ratings team rates MSCI INC as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate MSCI INC (MSCI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MSCI's revenue growth has slightly outpaced the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 8.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, MSCI's share price has jumped by 33.76%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MSCI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Diversified Financial Services industry and the overall market, MSCI INC's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 58.90% to $94.41 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 45.43%.
- You can view the full analysis from the report here: MSCI Ratings Report