MSCI Inc. 2022 Preview

Analysts at RBC Capital provided their outlook on MSCI Inc. (NYSE:MSCI), mentioning that the leadership position in ESG and Climate with run-rate revenue growth of 63% year-over-year to $312 million in Q3 and greater emphasis on Climate bode well to sustain strong momentum. Separately, strong demand for custom indices, strength in Factor franchises, as well as higher growth client verticals namely Wealth and Hedge Funds should help deliver on double-digit Index subscription growth.

Lastly, RCA acquisition has opened up significant CRE opportunities but incremental investment in Real Estate could weigh on FY22 EBITDA and margins. The analysts expect FY22 revenue of $2,287 million (up 12.8% year-over-year), above the consensus estimate of $2,263 million (up 11.6% year-over-year), driven by strong ESG and Climate momentum.