MSCI shares up 27% in the past 6 months, driven by strong demand for ESG solutions

From Nasdaq: 2024-12-30 09:41:00

MSCI shares have outperformed the broader finance sector, gaining 27.2% in the last six months. The growth is driven by strong demand for custom index modules and ESG solutions. MSCI’s expanding portfolio and robust adoption of Climate and ESG solutions have fueled growth with 11.1% organic revenue growth in Q3 2024.

MSCI launched MSCI Carbon Project Ratings, solidifying its leadership in ESG and climate solutions. Partnerships with Moody’s and Microsoft have expanded its clientele. Earnings estimates show upward movement with a 7.89% revenue growth projection for Q4 2024. MSCI’s diverse portfolio and clientele are driving top-line growth.

Despite diverse offerings, MSCI faces pricing pressure and macro headwinds, resulting in underperformance compared to the financial sector. Rising pricing pressure, longer sales cycles, and availability of free indices pose challenges. MSCI’s stock is considered overvalued, with a stretched valuation reflected in the forward Price/Sales ratio.

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Read more at Nasdaq: MSCI Shares Up 27% in the Past 6 Months: Is There More Room to Jump?