Wolfe Research's analysts started coverage on FactSet Research Systems (NYSE:FDS) with an Underperform rating, setting a price target at $430 on the stock.

The analysts pointed out that despite FactSet's significant margin growth over the past two years due to cost-saving measures, the increasingly competitive landscape and the demands of artificial intelligence could lead to further necessary investments. These investments, the analysts predict, may dampen earnings per share growth. They also observed that FactSet has already exceeded the medium-term margin goals it laid out during its 2022 investor day, hinting at limited room for further margin improvement by the fiscal year 2025..