FactSet Research Systems (NYSE: FDS) has been under pressure over the past year. Growth has slowed, investor sentiment has weakened, and valuation multiples have compressed. The stock trades near $274/share, well below last year’s levels as the market reassesses expectations for financial data providers in a softer environment.
Recently, FactSet introduced upgrades to its analytics platform aimed at improving client workflows and increasing platform stickiness. Management also emphasized tighter cost discipline to protect margins despite slower revenue growth. These steps show a clear focus on strengthening the core business rather than pursuing aggressive expansion.
This article outlines where Wall Street analysts think FactSet could trade by 2028. We pulled together consensus targets and valuation models to show the stock’s potential path. These figures reflect current analyst expectations and are not TIKR’s own predictions.
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Analyst Price Targets Suggest Modest Upside
FactSet trades near $274/share today. The average analyst price target is $336/share, which points to about 23% upside. This places the stock firmly in the modest upside category, with analysts expecting gains but not signaling strong conviction.
Forecasts show a wide range:
- High estimate: $430/share
- Low estimate: $282/share
- Median target: $317/share
- Ratings: 3 Buys, 1 Outperform, 10 Holds, 1 Underperform, 5 Sells
Optimistic analysts highlight FactSet’s strong margins and sticky customer base. More cautious voices point to slowing revenue growth and tighter software budgets across financial institutions.
For investors, the mixed sentiment reflects an environment where upside depends on execution. A clearer improvement in revenue stability and better traction from workflow enhancements would help the stock move closer to the higher end of the target range.
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FactSet: Growth Outlook and Valuation
The company’s fundamentals appear steady, supported by a resilient subscription model:
- Revenue is projected to grow 5.4%
- Operating margins are expected to remain near 34.8%
- Shares trade at 15.8x forward earnings, below the company’s usual range
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model suggests about $362/share by 2028
- That implies roughly 32% upside, or 10% annualized returns
These numbers point to slow but dependable compounding. FactSet does not appear positioned for rapid growth, but the stock looks more reasonably valued today after a significant reset.
For investors, this makes FactSet a stability driven story. Returns are likely to mirror steady earnings expansion supported by high retention, recurring revenue, and disciplined cost management.
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What’s Driving the Optimism?
FactSet remains one of the most dependable data providers in global finance. Its subscription based model generates predictable revenue, and renewal rates stay high even in slower markets. Recent workflow and platform upgrades have strengthened the product ecosystem and improved usability, helping deepen client engagement.
For investors, these strengths point to a company built for steady compounding. Strong retention, consistent pricing power, and a disciplined operating approach create a durable foundation for long term performance.
Bear Case: Slowing Growth and Competition
Growth has softened as financial institutions become more selective with software and research spending. Competitive pressure from Bloomberg, S&P Global, and emerging analytics platforms remains intense, making differentiation harder.
For investors, the concern is that this slower growth environment may keep the stock’s valuation range compressed. Without clearer signs of renewed momentum, multiple expansion could be difficult to achieve.
Outlook for 2028: What Could FactSet Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model suggests FactSet could trade near $362/share by 2028. This represents roughly 32% upside, or about 10% annualized returns.
This outlook already assumes stable margins and consistent renewal trends. To deliver stronger upside, FactSet would need to show firmer revenue acceleration or broader adoption of its enhanced analytics tools. Without that, investors should expect reliable but moderate compounding.
For investors, FactSet appears to be a steady long term holding supported by a strong recurring revenue base. The company’s path to outsized gains depends on whether management can rebuild momentum in a competitive and slower moving market.
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