MSCI's (MSCI) new subscriber growth and run rate continue to accelerate, even with Q2 net new sales missing analysts' expectations, Morgan Stanley said in a note emailed Wednesday.

The company reported Q2 adjusted earnings of $4.94 per share, up from $4.17 a year earlier, as operating revenue increased to $867 million from $772.7 million. Net new subscription sales for the quarter grew 8%, missing the consensus, according to the investment firm.

Net new sales were underwhelming given a high bar that was set after several quarters of beats and a 52% growth in Q1, Morgan Stanley said.

The brokerage also noted the company's better retention and cancelation figures in Q2, along with its strong pipeline and recent product launches.

Morgan Stanley cut its price target on MSCI to $700 from $727, and maintained its overweight rating.

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