BofA reinstates MSCI stock coverage with buy rating on index growth

Bank of America analysts reinstated coverage of MSCI Inc. stocks with a buy rating in New York on Tuesday, citing accelerating growth in the company's global equity indexes that are increasingly adopted by institutional investors worldwide. The decision marks a significant shift in the bank's stance after a period of neutrality on the index provider, reflecting growing confidence in MSCI's ability to capitalize on the expanding trend toward passive investing and ESG-focused products. MSCI, which provides critical benchmark indexes for institutional investors, has seen its stock price fluctuate over the past year as market participants questioned the sustainability of index growth amid market volatility. The bank's analysts highlighted MSCI's expanding market share in emerging economies and its successful diversification into analytics and ESG assessment services as key drivers behind their positive outlook. With trillions of dollars now tracking MSCI indexes worldwide, the firm continues to play a pivotal role in global investment strategies, particularly as asset managers increasingly rely on passive investment vehicles to achieve cost-efficient market exposure.