MSCI (MSCI) is likely to maintain its full-year free cash flow guidance despite "weak" assets under management and net new subscription sales, RBC Capital Markets said in a note emailed Wednesday.

The company is targeting free cash flow of $1.40 billion to $1.46 billion for fiscal 2025, according to the note.

The brokerage attributed the weakness in assets under management to recent market volatility, which it said may weigh on asset-linked fees and assets under management growth.

The firm forecast net new subscription sales of $25 million and retention of 93.9% in Q1, compared with consensus estimates of $34 million and 94%, respectively. RBC attributed the softer outlook to late-quarter budget tightening and MSCI's pricing-for-value strategy.

"We anticipate net new subscription sales to be weak in the near term, which could delay the reacceleration of subscription revenues," RBC said.

For Q1, RBC expects the company's revenue to grow 8.7% year over year to $739 million, slightly below the consensus estimate of $743 million. Adjusted EPS is projected at $3.90, roughly in line with the $3.91 consensus.

For the full year, RBC is modeling revenue growth of 8.8% to $3.11 billion and adjusted EPS of $16.75, compared to consensus estimates of $3.09 billion and $16.87, respectively.

The firm has an outperform rating on the stock with a price target of $675.

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