MSCI initiated with a Peer Perform at Wolfe Research

Wolfe Research analyst Scott Wurtzel initiated coverage of MSCI with a Peer Perform rating and fair value range of $605-$625 per share. The analyst believes the company has among the highest sales growth potential compared to its information services peers. MSCI stands to benefit from secular tailwinds around asset flows into climate and private asset products along with benefits on the index side coming from continued innovation and a growing demand for specialized indexes, the analyst tells investors in a research note. However, Wolfe sees certain headwinds across the business that may limit that growth over the near term. The ESG business is currently seeing a slowdown due to increasing regulation and noise from legislative bodies, while overall sales cycles remain elongated, the firm contends.