RBC Capital Markets characterizes the recent GenAI-related selloff in information services and exchanges stocks as an opportunity to buy rather than evidence of a lasting business threat. The firm singles out Moody's (MCO), S&P Global (SPGI), Nasdaq (NDAQ), MSCI (MSCI) and Verisk (VRSK) as especially attractive after the pullback, arguing these companies face limited disruption risk from large language models due to the scale and exclusivity of their data and the degree to which their products are embedded in client workflows.
RBC emphasizes that many of these firms operate with moats that are difficult for generative AI to replicate. The ratings operations at S&P Global and Moody's, the index franchises across S&P Global, Moody's and Nasdaq, and extreme-events analytics at Moody's and Verisk are cited as examples of industry-standard functions that are inherently resilient to displacement by models trained on publicly available text.
The brokerage highlights company-specific attributes that reduce each firm's exposure to GenAI pressure. S&P Global reportedly derives only 5% of revenue from publicly available data; Moody's has proprietary datasets tied to know-your-customer (KYC) and commercial real estate (CRE) workflows that operate within regulated processes; Nasdaq owns proprietary datasets covering roughly $10 trillion in assets; MSCI generates about 95% of revenues from proprietary information; and Verisk maintains an insurance-claims dataset built over four decades. These features, RBC argues, limit the value that off-the-shelf language models can substitute for.
Verisk is a focal point in RBC's notes. The stock fell 12.12% over the past week, and is trading near its 52-week low: a current price of $189.09 versus a 52-week low of $191.12. Over the past six months the shares have declined 27.9%. RBC calls attention to Verisk's financial profile as further support for a buying case - the company posts a 69.62% gross profit margin and has increased its dividend for seven consecutive years.
Market participants are awaiting Verisk's next quarterly report, scheduled for February 18. Analysis from research tools indicates the shares are trading below what certain valuation metrics would imply, a factor RBC sees as reinforcing the opportunity created by the recent selloff.
RBC attributes the broader pullback to a renewal of GenAI fears after the launch of a legal automation product from Anthropic, combined with weaker-than-expected results in the IT sector. The firm compares this episode to a mid-September drop in similar names after certain companies reported results, an episode that it says later produced buying opportunities.
Verisk's corporate developments have also featured in investor discussions. Management estimated that Winter Storm Fern could generate insured industry losses of up to $4 billion, an impact that the company says would place the event among the costliest U.S. winter storms on record. Separately, Verisk terminated a planned $2.35 billion acquisition of AccuLynx following a delayed regulatory review by the Federal Trade Commission. As a result of that decision, the company will redeem $1.5 billion in senior notes. One sell-side bank, Raymond James, has estimated the associated interest cost might reach $15 million or more.
Market reactions have included a rating change from BMO Capital, which upgraded Verisk from Market Perform to Outperform and kept a price target of $233.00, citing the company's valuation as attractive. These developments underline why RBC and other analysts consider the name to present a tactical buying opportunity amid the recent volatility.
RBC's broader message is that while GenAI is reshaping parts of the technology landscape, the competitive characteristics of many information-services and exchanges firms - proprietary data, tight workflow integration, and industry-standard products - reduce their vulnerability to displacement by general-purpose language models. That assessment shapes the firm's recommendation to view the recent weakness as a potential entry point rather than a signal of structural impairment.
Key context and next steps for investors:
- Verisk's share price and fundamentals are focal points for investors ahead of the company's Feb. 18 earnings release.
- Market moves have been linked to renewed GenAI concerns after product launches and to a softer IT sector earnings backdrop.
- Recent company-specific news - storm loss estimates, a terminated acquisition and related debt redemptions - are influencing valuation and risk assessments for Verisk.