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FDS - FactSet: Competitive Pressures And AI Challenges Ahead
FactSet Research Systems Inc.
2024-06-17 03:35:16 ET
Summary
FactSet has had a strong track record of steady growth in the financial data and analytics industry.
In recent quarters, the company has been forced to cut prices as competitive pressures mount and the company faces a slowing demand environment.
Consistent with management guidance, it's likely going to be more challenging to hit FY'24 guidance targets given the fact that customers are opting for AI and in-house solutions.
While the valuation may look attractive today at 19.6x EV/EBITDA, below the peer group and historical average, I believe this is warranted given the pressures ahead.