Raymond James raises MSCI stock price target on strong Q3 results

Raymond James has increased its price target for MSCI Inc. (NYSE:MSCI) to $680 from $660, maintaining a Strong Buy rating. The firm's decision is based on the company's strong Q3 2026 results, which demonstrated solid sales performance, particularly in the Index, Analytics, and Private Capital Solutions divisions within MSCI's Private Assets segment.

Raymond James highlighted that MSCI is effectively monetizing AI-native solutions, with reduced product development times and new customer use cases. The firm believes these results provide investors with increased confidence in MSCI's long-term revenue growth profile, potentially driving multiple re-rating events compared to the current valuation of 25 times 2027 estimated earnings per share.

Currently, MSCI trades at a P/E ratio of 32.2 and has a market cap of $42.7 billion. Over the past year, the company has delivered 11.6% revenue growth. However, InvestingPro analysis suggests the stock is overvalued relative to its fair value, placing it on the platform's Most Overvalued list.

The recent quarter marked a solid performance for MSCI, with the firm overcoming a period of choppy net new recurring sales activity. In other recent news, MSCI reported its Q3 2026 financial results, surpassing Wall Street expectations by earning an adjusted EPS of $5.11, compared to the forecasted $5.02. Revenue grew to $892 million, slightly above the anticipated $887.82 million, reflecting growth across index, analytics, and private capital segments. Asset-based fees, subscription revenue, and recurring net new sales all increased.

These positive developments have been well-received by investors and market analysts, indicating MSCI's continued expansion and operational efficiency in the current market landscape.