FactSet could become acquisition target, especially for PE - analyst

[Medical sales representative greeting a doctor with a handshake at the hospital]
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FactSet Research (NYSE:FDS [https://seekingalpha.com/symbol/FDS]) could become an acquisition candidate following its weakness, and private equity shops would be the most logical buyers.

"We believe FactSet's recent, share multiple de-rating increases the likelihood that it could become an acquisition target, private equity would be the most logical buyer, and that a range of scenarios would yield an acceptable IRR," Raymond James analyst Patrick O'Shaughnessy, who has a market perform rating on FDS, wrote in a note on Monday.

FactSet's (NYSE:FDS [https://seekingalpha.com/symbol/FDS]) valuation has fallen to the lowest level in more than five years, hurt by "mediocre" sales momentum, commentary from a competitor that FactSet (FDS [https://seekingalpha.com/symbol/FDS]) is competing heavily on price, concerns about competition from AI and a "somewhat" unexpected CEO transition.

FactSet (FDS [https://seekingalpha.com/symbol/FDS]) is appealing to potential buyers due to its recurring revenue business model, "very modest" financial leverage, and strong long-term track record, according to O'Shaughnessy.

FactSet (FDS [https://seekingalpha.com/symbol/FDS]) has a market cap of $14.4 billion.

Shares of FactSet (FDS [https://seekingalpha.com/symbol/FDS]) edged higher by 0.5% on Monday.

MORE ON FACTSET RESEARCH SYSTEMS

* FactSet: A Boring Stock That Could Power Your Portfolio (Rating Upgrade) [https://seekingalpha.com/article/4813632-factset-boring-stock-that-could-power-your-portfolio-rating-upgrade]
* FactSet Research Systems: Growth Inflected As Expected, Reiterate Strong Buy [https://seekingalpha.com/article/4797179-factset-research-systems-growth-inflected-as-expected-reiterate-strong-buy]
* FactSet: Q3 2025 Shows Resilience, But Price Multiples Are Still Too High [https://seekingalpha.com/article/4796642-factset-q3-2025-shows-resilience-but-price-multiples-are-still-too-high]
* FactSet signals confidence in Q4 and reaffirms full-year 2025 guidance as CEO transition looms [https://seekingalpha.com/news/4461036-factset-signals-confidence-in-q4-and-reaffirms-full-year-2025-guidance-as-ceo-transition]
* FactSet Research Q3 earnings miss as operating margin slides [https://seekingalpha.com/news/4460710-factset-research-q3-earnings-miss-as-operating-margin-slides]