FactSet's stock plunge increases likelihood of becoming buyout target, Raymond James says

FactSet Research Systems

25/08/2025 16:30

** Raymond James says the recent sharp fall in FactSet's FDS.N valuation increases the likelihood the financial data provider could become an acquisition target

** Says FDS' recurring revenue business model and modest financial leverage in particular would be appealing to private equity

** FDS stock has plunged 20% this year after just rising 0.7% in 2024

** "We believe this de-rating has been driven by a combination of mediocre sales momentum in recent quarters, recent commentary from a competitor that implied FactSet is competing more heavily on price, a somewhat unexpected CEO transition, and concerns about growing competitive pressure from AI,"  Raymond James says

** FDS did not immediately respond to a Reuters request for comment on the brokerage's report

** 3 of 21 brokerages rate the stock "buy" or higher, 12 "hold" and 6 "sell" or lower; median PT $422.50 - data compiled by LSEG

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com))