Buy the Pullback in MSCI ACWI and S&P 500 Our outlook remains bullish on global equities (MSCI ACWI) with ACWI-US and the S&P 500 holding above their respective bases at $117 and 5650-5670. We have discussed since mid-October how we would use any pre-election pullback in the MSCI ACWI or the S&P 500 (the U.S. remains our only country overweight) as an opportunity to add exposure, and that we see a high probability of significant upside going into year-end and the early part of 2025. This remain...
A director at MSCI Inc sold 1,816 shares at 575.000USD and the significance rating of the trade was 70/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showin...
Credit markets are accurately stating MSCI's credit risk with a YTW of 5.693% relative to an Intrinsic YTW of 5.553% and an Intrinsic CDS of 123bps. Meanwhile, Moody's is overstating the firm's fundamental credit risk, with its speculative Ba1 credit rating two notches below Valens' IG4 (Baa2) credit rating.
Credit markets are overstating MSCI's credit risk with a YTW of 6.013% relative to an Intrinsic YTW of 5.143% and an Intrinsic CDS of 92bps. Meanwhile, Moody's is overstating the firm's fundamental credit risk, with its speculative Ba1 credit rating two notches below Valens' IG4 (Baa2) credit rating. Incentives Dictate Behavior™ analysis highlights mostly positive signals for credit holders. MSCI's compensation metrics incentivizes management to improve all three value drivers: margins, revenue...
Credit markets are overstating MSCI's credit risk with a YTW of 6.066% relative to an Intrinsic YTW of 5.236% and an Intrinsic CDS of 88bps. Meanwhile, Moody's is overstating the firm's fundamental credit risk, with its speculative Ba1 credit rating two notches below Valens' IG4 (Baa2) credit rating. Incentives Dictate Behavior™ analysis highlights mostly positive signals for credit holders. MSCI's compensation metrics incentivizes management to improve all three value drivers: margins, revenue...
Shift4 Payments (FOUR) is simultaneously converting its existing clients to higher margin services while expanding its business into new verticals with large addressable markets in the payment processing market. Uniform Accounting confirms that the market isn't pricing this in. Considering management's strong execution and alignment to continue executing, equity upside is warranted. Shift4 has been rapidly gaining market share in the payment processing industry with its gateway solutions for r...
MSCI Inc. (MSCI) currently trades well above corporate and historical averages relative to Uniform earnings, with a 43.9x Uniform P/E (Fwd. V/E'). At these levels, markets are pricing in expectations for Uniform ROA to reach new highs of 123%, accompanied by 3% Uniform asset growth. However, analysts expect Uniform ROA to slightly fade to 61% in 2023, accompanied by 12% Uniform asset growth. If sustained going forward, these levels would imply a stock price closer to $464, representing approxi...
The independent financial analyst theScreener just awarded an improved star rating to MSCI (US), active in the Publishing industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 2 out of 4 possible stars. With regard to its market behaviour, it remains unchanged and can be qualified as moderately risky. theScreener considers that these elements allow slightly upgrading its rating to Neutral. As of the analysis date February 8, 2022, the closing pr...
Constellation Brands (STZ) has transformed its profitability profile through its massive expansion in the beer market and move to premiumization over the last seven years. Uniform Accounting highlights that the market is pricing in a reversal of recent profitability expansion and below-average growth, but management is confident about executing on their strategy and is aligned to continue to do so, signaling the potential for equity upside as the company continues executing. Constellation...
MSCI (MSCI) currently trades well above corporate and historical averages relative to Uniform earnings, with a 45.1x Uniform P/E (Fwd. V/E'). At these levels, markets are pricing in expectations for Uniform ROA to reach new highs of 123%, accompanied by 3% Uniform asset growth. However, analysts expect Uniform ROA to slightly fade to 49% in 2022, accompanied by 14% Uniform asset growth. If sustained going forward, these levels would imply a stock price closer to $348, representing approximate...
Citigroup (C) looks to finally be rounding the corner of its transformational reconstruction. Uniform Accounting shows both the company's significant operational improvements, and that the market isn't pricing them in sustainably. That makes Citi a compelling buy. Citi has historically been a worst-in-class performer in terms of Uniform ROE, around 5% in the early 2010s, however these operational improvements have already lifted ROE towards peer levels, approaching double digit levels, and the...
MSCI Inc. (MSCI:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 54.3x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about product investments, growth opportunities, and their ESG offerings. Specifically, management may be overstating the success of their investments in new product offerings, their positioning to take advantage of growth opportunities, and the pace of the ES...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
LPLA has significantly transformed their business returns, but the market is expecting the company to give operational improvements back. The market is expecting UAFRS-based (Uniform) ROA (ROA') to fade from 30% in 2019 to 20% in 2024, with Uniform Asset growth slowing to a modest 5% a year going forward. The market does not think the company's improvement in Uniform ROA from 15%-20% levels historically to towards 30%+ is sustainable, and is expecting the company to see its operating leverage ...
MSCI Inc. (MSCI:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 46.4x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about the ESG business, indices growth, and their partnerships Specifically, management may lack confidence in their ability to monetize ESG data, maintain their competitive advantages in ESG, and drive growth. Moreover, they may be concerned about their MSCI ESG rating...
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