BofA Securities has reinstated coverage of MSCI Inc. (NYSE:MSCI), assigning a buy rating and setting a price target of $700, the firm said Monday. That valuation sits well above MSCI’s most recently reported trading price of $529.75 and follows the stock trading at a price-to-earnings multiple of 33.5.
MSCI operates a global business that supplies market indices, analytics and data to institutional investors and other financial market participants. The company’s revenue mix is highly international: 76% of total fees are generated outside the United States, a geographic focus BofA identifies as a central component of MSCI’s growth profile. Over the last 12 months, MSCI’s top line rose 9.75%, and the company has achieved a 13% compound annual growth rate in revenue over the past five years.
BofA highlighted several factors that it believes position MSCI to deliver strong earnings growth. The bank pointed to an anticipated broadening in equity market performance and rising demand for customized portfolios. In addition, BofA expects MSCI to benefit from an expanding suite of AI-enabled customization tools that serve asset managers’ increasing appetite for tailored solutions.
Profitability metrics cited in the coverage note underscore the company’s current earnings base. InvestingPro data referenced by BofA shows MSCI generated diluted earnings per share of $15.69 over the last 12 months. Looking forward, analysts’ consensus forecasts place EPS at $19.61 for fiscal year 2026.
MSCI is widely recognized as one of the standard setters in indices and benchmarks, operating alongside other large providers in the sector. BofA emphasized that asset managers face very high switching costs when considering a move between index providers. The bank characterized those switching costs as a protective barrier that helps insulate MSCI from potential AI-driven disruption within the index and benchmark market.
The reinstated coverage follows a recent quarterly report in which MSCI posted fourth-quarter 2025 results that exceeded expectations. The company reported EPS of $4.66, ahead of a $4.58 consensus estimate, and revenue of $822.5 million, narrowly surpassing a projection of $820.45 million. Those results were highlighted by BofA as evidence of the firm's financial resilience and were framed as an important data point for investors monitoring MSCI’s earnings trajectory.
Investors and market participants frequently scrutinize such quarterly earnings and top-line figures for signals about underlying demand for index products, analytics and data services. BofA’s reinstatement and bullish target reiterate the firm’s view that MSCI’s combination of international fee exposure, product customization and entrenched market position support a favorable earnings outlook, even as the stock trades at a relatively elevated valuation multiple.