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.
Introduction
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FactSet: Competitive Pressures And AI Challenges Ahead