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FactSet Research Systems Inc. (NYSE:FDS) is included among the 10 Dividend Stocks With Low Payout Ratios and Strong Upside Potential.

Rothschild & Co Redburn Turns Bearish on FactSet (FDS) Over AI Risks and Weakening Market Position

On June 18, Rothschild & Co Redburn downgraded FactSet Research Systems Inc. (NYSE:FDS) to Sell from Neutral and cut its price target to $215 from $291. Analyst Henry Hayden said FactSet’s pricing power is coming under pressure as the terminal’s “dominance erodes” with data consumption becoming increasingly unbundled. He believes this risk is not fully reflected in the stock’s valuation. In a research note, the analyst added that AI disintermediation risks are adding to FactSet’s “structurally challenged” end markets, which are already dealing with fee compression, industry consolidation, and limited headcount growth.

On May 27, RBC Capital lowered its price recommendation on FDS to $240 from $243. It reiterated a Sector Perform rating ahead of the company’s third-quarter results. Analyst Ashish Sabadra said the firm expects an Annual Subscription Value (ASV) beat, driven by international pricing increases, strong demand, and a healthy pipeline across regions and client types. RBC also said FactSet’s expanded managed services offerings, competitive product positioning, and structural changes to its sales compensation model support its growth expectations.

FactSet Research Systems Inc. (NYSE:FDS) is a global financial digital platform and enterprise solutions provider. The company delivers financial data, analytics, and open technology solutions to clients worldwide, including individual users.

While we acknowledge the risk and potential of FDS 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 FDS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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