FactSet's Weakness Makes it a Prime Acquisition Target for Private Equity Firms.
ByAinvest
Monday, Aug 25, 2025 11:11 am ET1min read
FDS--
O'Shaughnessy noted that FactSet's valuation has fallen to its lowest level in more than five years, with a market cap of $14.4 billion. The analyst believes that private equity firms are the most logical buyers due to the company's recurring revenue business model and strong long-term track record. FactSet's "very modest" financial leverage also makes it an attractive acquisition candidate [1].
The potential acquisition comes amid concerns about FactSet's recent CEO transition and the company's operating margin slide in Q3 2025 [2]. Despite these challenges, FactSet has shown resilience in its financial performance, as evidenced by its Q3 2025 earnings report and reaffirmed full-year 2025 guidance [3].
Shares of FactSet (FDS) edged higher by 0.5% on Monday following the analyst's note, indicating that investors are taking notice of the potential acquisition scenario [1]. However, it is essential to note that the company has not officially confirmed any acquisition talks.
Private equity firms are known for their ability to turn around struggling companies by implementing strategic changes and cost-cutting measures. FactSet's strong market position and recurring revenue model could make it an attractive target for such firms.
In conclusion, FactSet Research's recent share price de-rating has made it a potential acquisition candidate, with private equity firms being the most likely buyers. The company's strong track record and recurring revenue model could make it an appealing target for private equity firms seeking to enhance their portfolios.
References:
[1] https://seekingalpha.com/news/4488793-factset-could-become-acquisition-target-especially-for-pe-analyst
[2] https://seekingalpha.com/news/4488793-factset-could-become-acquisition-target-especially-for-pe-analyst
[3] https://seekingalpha.com/news/4488793-factset-could-become-acquisition-target-especially-for-pe-analyst
FactSet Research, a financial data and analytics provider, may become an acquisition target due to its recent share price de-rating. Private equity firms are seen as the most likely buyers, according to an analyst. The company's weakness has made it an attractive candidate for acquisition, with private equity firms being the most logical buyers.
FactSet Research (NYSE: FDS), a leading provider of financial data and analytics, may become an acquisition target following a significant share price de-rating. According to Raymond James analyst Patrick O'Shaughnessy, the recent decline in FactSet's valuation, driven by factors such as mediocre sales momentum, competitive pricing pressures, and AI competition, has increased the likelihood of an acquisition [1].O'Shaughnessy noted that FactSet's valuation has fallen to its lowest level in more than five years, with a market cap of $14.4 billion. The analyst believes that private equity firms are the most logical buyers due to the company's recurring revenue business model and strong long-term track record. FactSet's "very modest" financial leverage also makes it an attractive acquisition candidate [1].
The potential acquisition comes amid concerns about FactSet's recent CEO transition and the company's operating margin slide in Q3 2025 [2]. Despite these challenges, FactSet has shown resilience in its financial performance, as evidenced by its Q3 2025 earnings report and reaffirmed full-year 2025 guidance [3].
Shares of FactSet (FDS) edged higher by 0.5% on Monday following the analyst's note, indicating that investors are taking notice of the potential acquisition scenario [1]. However, it is essential to note that the company has not officially confirmed any acquisition talks.
Private equity firms are known for their ability to turn around struggling companies by implementing strategic changes and cost-cutting measures. FactSet's strong market position and recurring revenue model could make it an attractive target for such firms.
In conclusion, FactSet Research's recent share price de-rating has made it a potential acquisition candidate, with private equity firms being the most likely buyers. The company's strong track record and recurring revenue model could make it an appealing target for private equity firms seeking to enhance their portfolios.
References:
[1] https://seekingalpha.com/news/4488793-factset-could-become-acquisition-target-especially-for-pe-analyst
[2] https://seekingalpha.com/news/4488793-factset-could-become-acquisition-target-especially-for-pe-analyst
[3] https://seekingalpha.com/news/4488793-factset-could-become-acquisition-target-especially-for-pe-analyst
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