Back to top

Image: Bigstock

MSCI Acquires Compass Financial to Expand Multi-Asset Indexes

Read MoreHide Full Article

Key Takeaways

  • MSCI acquired Compass Financial to expand multi-asset indexes across equities, commodities and crypto.
  • MSCI extended its ETF licensing deal with BlackRock through 2035 to support global ETFs tracking its indexes.
  • MSCI licensed Moody's credit risk models for its private credit database covering funds and 80,000 loans.

MSCI (MSCI - Free Report) recently announced the acquisition of Compass Financial Technologies to strengthen its capabilities in multi-asset and index calculation, including areas like commodities and cryptocurrencies.  

The acquisition will enable MSCI to expand its ability to create and calculate complex indexes spanning multiple asset classes. These include global equities, fixed income, commodities, digital assets, currencies and derivatives.

MSCI’s Expanding Portfolio Aids Prospect

The latest move bodes well with MSCI’s strategy of expanding its index along with data leadership, integrating public and private market analytics, and increasing ETF and wealth-management distribution.

In the fourth quarter of 2025, the company extended its ETF licensing agreement with BlackRock until 2035. The partnership supports ETFs that track MSCI indices globally. The company’s close partnership with clients like BlackRock, along with the success shared by both companies, helps MSCI to solidify tremendous future growth.
 

                                         MSCI Inc Price and Consensus

MSCI Inc Price and Consensus

MSCI Inc price-consensus-chart | MSCI Inc Quote

The company signed a large deal with a European wealth-tech platform to expand ESG and sustainability data distribution and reach wealth-management clients through partner networks.

In the third quarter of 2025, MSCI licensed Moody’s credit risk models, which are applied to MSCI’s private credit database. The database includes private credit funds, 80000 loans and 14,000 borrowers.

MSCI Offers 2026 Guidance

For 2026, MSCI anticipates total operating expenses in the range of $1.490-$1.530 billion and Adjusted EBITDA expenses of $1.305 billion to $1.335 billion.

Interest expenses are expected to be between $274 million and $280 million.

Net cash from operating activities and free cash flow are anticipated to be between $1.64 billion and $1.69 billion and $1.47-$1.53 billion, respectively.

The Zacks Consensus Estimate for first-quarter 2026 and 2026 revenues is pegged at $833.4 million and $3.46 billion, respectively, indicating year-over-year growth of 11.74% and 10.52%.

The Zacks Consensus Estimate for first-quarter 2026 and 2026 earnings are pinned at $4.38 per share and $19.44, indicating 9.5% and 12.5% year-over-year growth, respectively.

MSCI’s Zacks Rank & Stocks to Consider

Currently, MSCI carries a Zacks Rank #3 (Hold).

The company’s shares have increased 0.3% in the last six months compared with the Zacks Finance sector’s rise of 2.3%.

Some better-ranked stocks in the broader Zacks Finance sector are Allstate (ALL - Free Report) , which currently sports a Zacks Rank #1 (Strong Buy), whereas Enact Holdings (ACT - Free Report) and Aegon (AEG - Free Report) carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rates for Allstate, Enact Holdings and Aegon are currently pegged at 19%, 4.1% and 32.4%, respectively. Shares of Allstate and Enact Holdings have appreciated 5.4% and 7.5%, respectively, whereas the shares of Aegon have declined 6.1% over the past six months.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in