On Monday, Raymond (NS:RYMD) James analyst Patrick O'Shaughnessy adjusted the price target for Broadridge Financial (NYSE:BR) stock to $238, up from the previous $235, while maintaining an Outperform rating. The revision of the target price comes as the financial technology company, currently valued at $26.32 billion, approaches its second-quarter fiscal year 2025 earnings report on January 30.
O'Shaughnessy expects Broadridge to experience an uptick in equity position count growth throughout fiscal year 2025, which is anticipated to contribute to a moderate increase in recurring revenues from the Investor Communication Solutions (ICS) segment. The company has demonstrated steady performance with a 4.67% revenue growth over the last twelve months. Additionally, a robust quarter is foreseen for the company's mutual fund event-driven revenue.
Despite the potential for revenue growth, the analyst predicts that Broadridge will likely reinvest any unexpected revenue gains, thus not altering its full-year earnings per share (EPS) guidance. O'Shaughnessy's comments reflect an expectation that the company will follow its usual practice of reinvesting surplus revenue.
In other recent news, Broadridge Financial Solutions (NYSE:BR) has seen significant developments. The company reported a strong fiscal first quarter 2025, marking a 4% rise in recurring revenue and a record $57 million in closed sales, a 21% increase year-over-year. The company also revealed an adjusted earnings per share (EPS) of $1 and upgraded its recurring revenue guidance for fiscal 2025 to 6%-8%, up from the previously forecasted 5%-7%.
In the realm of mergers and acquisitions, Broadridge continues to explore opportunities while maintaining a focus on organic growth, with a robust sales pipeline and a backlog of $450 million. These are the recent developments in the company's activities.
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