On Tuesday, TD Cowen has increased the stock price target for Deluxe Corp (NYSE: NYSE:DLX) to $35.00 from the previous $33.00 while maintaining a Buy rating on the stock. The adjustment follows Deluxe Corp's robust earnings report for the first quarter of 2024, released on May 1.
The firm has updated its financial model to align with recent changes in how Deluxe reports its business segments. This revision reflects a slight uptick in estimates, spurred by the company's positive performance outlook. The analyst at TD Cowen anticipates that Deluxe is likely to exceed financial expectations in the upcoming quarters of the year.
The new price target is based on steady valuation multiples, indicating confidence in the company’s consistent market performance. The reiterated Buy rating suggests that the firm believes Deluxe Corp holds potential for investors, backed by its strong start to the year.
Deluxe Corp's first-quarter earnings have evidently set a solid foundation for the year, leading to the revised price target. The company's management has provided an optimistic forecast, which has been factored into the updated estimates by TD Cowen.
The analyst's statement underscores the likelihood of Deluxe Corp continuing its positive trajectory throughout the remainder of 2024. The maintained Buy rating alongside the increased price target reflects an expectation of continued financial health and stock performance for Deluxe Corp.
InvestingPro Insights
Following TD Cowen's optimistic outlook on Deluxe Corp (NYSE: DLX) and the recent increase in their price target, InvestingPro data provides additional context for investors considering the stock. Deluxe Corp's market capitalization currently stands at $1.05 billion, with a trailing twelve-month P/E ratio of 14.1, indicating a potentially attractive valuation relative to earnings. Notably, the company's gross profit margin is impressive at 53.47%, which supports the positive sentiment regarding its profitability.
InvestingPro Tips further enrich the narrative with insights such as Deluxe's high shareholder yield and the expectation that net income will grow this year. With a dividend yield of 5.24% and a history of maintaining dividend payments for 54 consecutive years, Deluxe presents an appealing option for income-seeking investors. Moreover, the stock has experienced a strong return over the last year, with a 66.74% increase, and is trading near its 52-week high, which may interest growth-focused investors.
For those looking to dive deeper into Deluxe Corp's potential, InvestingPro offers a wealth of further tips and data. Currently, there are 12 additional InvestingPro Tips available for DLX, which can provide more nuanced guidance to help refine investment decisions. To explore these insights, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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