Financial data and software company FactSet Research Systems, Inc. (FDS) recently revealed the acquisition of Cobalt Software, Inc., a portfolio monitoring solutions provider for private capital companies. The financial terms of the deal, which closed on October 12, 2021, have been kept under wraps.
Following the news, shares of the company declined marginally to close at $409.73 on Wednesday.
Cobalt’s acquisition will enable FactSet to have access to its advanced portfolio monitoring platform that allows private capital firms to efficiently collect, analyze, and report on fund and portfolio company performance metrics and KPIs.
Executive Vice President, Research & Advisory Solutions at FactSet, Goran Skoko, said, “There is a growing need for a complete workflow solution for general partners that connects differentiated data with sophisticated tracking and portfolio reporting. Integrating Cobalt’s offering into FactSet allows us to meet that need while adding proprietary fund performance content to our private markets data universe.” (See Top Smart Score Stocks on TipRanks)
Recently, RBC Capital analyst Ashish Sabadra reiterated a Buy rating on the stock and raised the price target from $425 to $453, which implies upside potential of 10.6% from current levels.
According to the analyst, the company’s Data as a Service offering, Cloud migration, open architecture, and APIs could be revenue drivers in the future.
Consensus among analysts is a Hold based on 2 Buys, 4 Holds, and 2 Sells. The average FactSet price target stands at $392.13, which implies downside potential of 4.3% from current levels. Shares have gained 22.22% over the past year.
FactSet scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations.