- FactSet has a Price to Book value of 13.52 which is could show that the equity is slightly overvalued since the industry's P/B is 6.4. - They have a declining client retention ratio which obviously is a massive concern for the company. Failing to keep their old clients will impact the company's growth negatively in the long term. - They operate in a very competitive market, against the likes of Bloomberg L.P, Reuters and the Dow Jones & Company Inc. these companies have more resources than FactSet. Though FDS has a technological advantage these companies have more money, marketing and technical resources. - FactSet shares underperformed the industry's growth of 26.6% by 1.1%.
NeroTree Capital rates FactSet Research Systems Inc. a SELL with a price target of $175.