We came across a bullish thesis on Morningstar, Inc. on r/ValueInvesting by No_Town_2496. In this article, we will summarize the bulls’ thesis on MORN. Morningstar, Inc.’s share was trading at $172.41 as of February 25th. MORN’s trailing and forward P/E were 24.07 and 19.80 respectively according to Yahoo Finance.
Investments, Finance
Morningstar, Inc. provides independent investment insights for investors in the United States, Asia, Australia, Canada, Continental Europe, the United Kingdom, and internationally. MORN is not statistically cheap on traditional valuation ratios, but the stock is beginning to look increasingly compelling at current levels given the durability and strategic positioning of its core assets.
The company represents a crown jewel in mutual fund ratings, investment research, and proprietary financial data, serving asset managers, advisors, and institutions through diversified revenue streams that are largely recurring and growing at a steady 5–10% rate on a substantial base. While management transition risk exists under a relatively new executive regime, the continued involvement of founder Joe Mansueto as chairman provides governance continuity and long-term strategic alignment typical of successful legacy franchises.
The central pillar of Morningstar’s moat lies in its ownership of PitchBook, a high-value data platform focused on private markets. Unlike commoditized fund data that may face pricing pressure, PitchBook’s datasets on private companies, venture capital funding rounds, and early-stage startups are proprietary and relationship-driven, often costing tens of thousands of dollars per seat. This data is not easily scraped or replicated by AI systems, as it depends on curated contributions, trust-based information sharing, and network effects among venture capital firms.
In fact, increased AI usage may reinforce the value of controlled, verified datasets rather than undermine them. As interest rates decline and IPO activity begins recovering, renewed startup formation and venture funding cycles directly support PitchBook’s growth. With scalable economics, expanding private market complexity, and strong competitive positioning, Morningstar appears structurally advantaged for sustained long-term expansion.
Previously, we covered a bullish thesis on Morningstar, Inc. (MORN) by Flyover Stocks in May 2025, which highlighted the company’s strong moat in proprietary financial data, founder-led governance, and long-term outperformance driven by its Data & Analytics segment. MORN’s stock price has depreciated by approximately 43.3% since our coverage due t0 sector pullbacks in information services amid generative AI disruption fears. No_Town_2496 shares a similar view but emphasizes on PitchBook’s private-market data moat and resilience against AI disruption.
Morningstar, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held MORN at the end of the third quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of MORN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MORN and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
