Rothschild & Co Redburn Turns Bearish on FactSet (FDS) Over AI Risks and Weakeni

FactSet Research Systems Inc. (NYSE:FDS) is included among the 10 Dividend Stocks With Low Payout Ratios and Strong Upside Potential.

On June 18, Rothschild & Co Redburn downgraded FactSet Research Systems Inc. (NYSE:FDS) to Sell from Neutral and cut its price target to $215 from $291. Analyst Henry Hayden said FactSet's pricing power is coming under pressure as the terminal's "dominance erodes" with data consumption becoming increasingly unbundled. He believes this risk is not fully reflected in the stock's valuation. In a research note, the analyst added that AI disintermediation risks are adding to FactSet's "structurally challenged" end markets, which are already dealing with fee compression, industry consolidation, and limited headcount growth.

On May 27, RBC Capital lowered its price recommendation on FDS to $240 from $243. It reiterated a Sector Perform rating ahead of the company's third-quarter results. Analyst Ashish Sabadra said the firm expects an Annual Subscription Value (ASV) beat, driven by international pricing increases, strong demand, and a healthy pipeline across regions and client types. RBC also said FactSet's expanded managed services offerings, competitive

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/rothschild-co-redburn-turns-bearish-045818326.html)