Andersen Group (ANDG) is set to see organic revenue growth over the next few years, however, the stock is already fairly valued, Morgan Stanley said in a note on Monday.

The analysts said the company operates in a large $87 billion market and should benefit from long-term tailwinds, including growth in family office wealth, which is expected to rise about 9% annually through 2030. "However, while ANDG has an attractive top line growth rate, and higher margins than consulting peers, we believe the stock is appropriately priced," according to the note.

The analysts said they expect Andersen to deliver about 10% organic revenue growth on average from 2025 to 2028, driven by pricing increases, more partners, and higher client engagement. However, organic growth has slowed in recent years. The analysts added that the business should remain relatively resilient to artificial intelligence disruption due to its complex client work, though results may be seasonal around tax deadlines.

The analysts said they would become more constructive on Andersen Group if the company consistently beats earnings expectations. Downside risks include intense competition, project-based revenue that reduces visibility, potential client losses, and broader labor market pressures.

Morgan Stanley initiated Andersen Group at equalweight with a $22 price target.

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