MSCI downgraded to Neutral from Buy at Redburn

Redburn downgraded MSCI to Neutral from Buy with a price target of $554, down from $650. While MSCI is a “quality business,” challenges to growth are mounting as ESG investing matures and peers expand in benchmark indices and analytics, the analyst tells investors in a research note. The firm says these headwinds will compound to slow MSCI’s annual earnings growth to 15% through 2026 versus 21% over the prior comparable period. The recent share price rally and recovery in relative performance year-to-date also create a “less attractive valuation opportunity,” contends Redburn.