MSCI (MSCI) is likely to see double-digit growth in net new subscriptions for 2025, which should positively impact the stock price, RBC Capital Markets said in a note emailed Thursday.

However, the stock came under pressure from "pockets of weakness" and the company's cautious comments, the firm said, after MSCI released its Q4 results.

Client budget allocations are driving a pickup in MSCI's pipeline and an improved sales cycle among US asset managers, hedge funds, wealth, and asset owners. However, the financial markets data and analytics provider continues to anticipate "lumpiness in retention (and) headwinds within European active asset managers," RBC said.

Adding to the pressure on the stock, MSCI didn't provide specific guidance on pricing increases for this year. Still, RBC said the company's improving pipeline indicates "solid growth" this year and beyond.

RBC has an outperform rating on the stock and a $675 price target.

Price: 593.91, Change: +0.86, Percent Change: +0.14