Raymond James revised its price target for MSCI Inc. (NYSE:MSCI) upward to $710.00 from $690.00 and left its rating at Outperform, signaling continued confidence in the equity despite a mixed near-term cash flow outlook. The new target implies about a 17% upside from MSCI's then-current share price of $606.25, with the stock trading near a 52-week high of $634.99.
The brokerage firm highlighted MSCI's fourth-quarter 2025 financial results as the primary rationale for the move. Raymond James pointed to notable momentum in net new recurring subscription sales across MSCI's Index and Private Assets businesses, a development the firm said is likely to translate into stronger subscription revenue growth in upcoming quarters.
MSCI's reported fourth-quarter 2025 earnings and revenue modestly exceeded Wall Street expectations. The company posted earnings per share of $4.66, above the forecasted $4.58, and generated revenue of $822.5 million compared with consensus estimates of $820.45 million. Despite the beats on both earnings and revenue, MSCI's shares declined during pre-market trading following the release.
Raymond James acknowledged that MSCI's 2026 cash flow outlook was below its prior expectations but characterized the shortfall as stemming from temporary factors rather than structural problems. The firm continued to describe MSCI's risk/reward profile as attractive, citing the company's pricing power, proprietary datasets, and ongoing tailwinds from secular trends in passive investing - factors the analyst believes support a premium valuation.
The analyst view ties the company's near-term performance to subscription sales execution. Strong net new recurring subscription sales in core segments were presented as the key indicator for revenue trajectory, while the 2026 cash flow projection introduced a recognized uncertainty that Raymond James expects to be transitory.
In sum, the Raymond James note raises the firm's valuation stance on MSCI on the basis of subscription sales strength and persistent structural advantages, while flagging a below-expectations cash flow outlook for 2026 as a temporary headwind that has not altered the overall Outperform stance.