Analyst Note
| Rajiv Bhatia, CFA |Narrow-moat rated FactSet reported a solid fiscal second quarter. Organic revenue grew 9.9%, an acceleration from the 9.1% reported in the prior quarter. Revenue and adjusted EPS beat the FactSet consensus by 1% and 10%, respectively, and we believe a sizable portion of the earnings beat was due to a lower-than-expected tax rate. FactSet also tweaked its 2022 revenue and earnings outlook higher. We are raising our fair value estimate on FactSet’s shares to $340 from $316 as we incorporate FactSet’s strong results and its acquisition of CUSIP Global Services. We regard FactSet’s shares as modestly overvalued.