MSCI downgraded to Perform from Outperform at Oppenheimer

Oppenheimer downgraded MSCI to Perform from Outperform. The firm’s downgrade is predicated upon increased risk of downward earnings revision. Given that the run rate growth of key emerging opportunities has been decelerating, Oppenheimer now expects both Index and ESG and Climate run rate growth to slow down over the next few quarters. “Higher for longer” and anti-ESG narratives during election year also won’t help. It is important to note, the firm says, that it still believes MSCI is a dominant player in this space, and this view hasn’t changed since it first recommended the stock in 2020. However, the setup is becoming unfavorable in the near to medium term, Oppenheimer argues. It would wait for a better entry point to become more constructive.