- MSCI has a high quality business model with recurring revenues and high retention rates, bringing about better revenue visibility, stickiness and lower risk.
- The company has multiple secular industry tailwinds that can enable it to generate and sustain double-digit revenue growth.
- MSCI is a pioneer and market leader in the ESG and Climate segment, which is a fast growing segment as there is an increased demand for ESG investments.
- The company has industry leading EBITDA margins and attractive Free Cash Flow generation profile that demonstrates its superior competitive moat relative to peers.
- As such, my target price for MSCI is $567, implying a 36% upside from current levels.
For further details see:
MSCI: High Quality Company For The Low Return Environment