MSCI Price Target Raised to $700 as AI Demand Fuels Index Sales
MSCI•Wells Fargo upgraded MSCI to Overweight and raised its price target to $700 from $650, citing accelerating demand for AI-driven quantitative investment strategies. The firm forecasts EPS of $20.23 in 2026 and $23.35 in 2027, and notes three straight quarters of robust index net new sales.
1. Upgrade and Price Target Boost
Wells Fargo upgraded MSCI to Overweight from Equal Weight and raised its price target from $650 to $700, implying a 19% upside from the $588.52 closing price.
2. Strong Index Business Momentum
MSCI’s Index business has delivered three consecutive quarters of robust net new sales, driven by hedge funds, brokerages and systematic trading firms that rely heavily on its data for quantitative strategies.
3. AI Adoption Drives Growth and Efficiency
Accelerating demand for AI-powered financial tools and large-scale datasets positions MSCI’s proprietary indexes deeply within trading workflows, while automation across its 84% offshore workforce has cut costs and avoided hundreds of hires, saving tens of millions.
4. Bullish Earnings Outlook and Potential Risks
Analysts now project EPS of $20.23 in 2026 and $23.35 in 2027 based on a 30x multiple on 2027 earnings, but warn that fee compression, the shift to passive investing and quant strategy overcrowding could pressure growth.
