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On Monday, DA Davidson analyst Peter Heckman updated his outlook on Broadridge Financial (NYSE:BR), increasing the price target to $220 from the previous $215 while keeping a Neutral rating on the shares. The revision follows Broadridge’s recent fiscal second-quarter earnings release, which slightly surpassed both DA Davidson’s estimates and the consensus. Currently trading at $238.65, near its 52-week high of $241.45, the stock carries a market capitalization of $28.03 billion. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
Broadridge’s latest financial results revealed that the company exceeded expectations with its performance, achieving revenue growth of 5.73% over the last twelve months. In response to the earnings report, management confirmed their financial guidance for fiscal 2025. They expect a year-over-year growth of 6%-8% in recurring revenue, adjusted operating margins to remain approximately flat at 20.0%, and an 8%-12% year-over-year increase in adjusted earnings per share (EPS). InvestingPro data shows the company maintains a strong financial health score, with particularly high marks in profitability metrics.
Heckman’s decision to adjust the price target comes after taking into account the company’s second-quarter update. In his analysis, Heckman noted the company’s solid results and stated, "Following the 2Q update, we are modestly raising our forecasts." Despite the positive performance, the analyst chose to maintain a Neutral stance on Broadridge stock, which currently trades at a P/E ratio of 36.85x. The broader analyst community maintains targets ranging from $208.13 to $260, reflecting diverse views on the company’s valuation.
Broadridge Financial’s affirmation of their financial guidance for the fiscal year 2025 reflects their confidence in the company’s growth trajectory and stability. The guidance includes key metrics that are essential for investors to gauge the company’s future performance.
In summary, DA Davidson’s revised price target for Broadridge Financial indicates a slight increase in their valuation of the company’s stock, yet the firm’s analysts remain cautious with a Neutral rating, suggesting that they believe the stock is fairly valued at the current level.
In other recent news, Broadridge Financial Solutions has reported promising fiscal second quarter results with recurring revenues marking a 9% increase year-over-year. The company’s adjusted earnings per share were at $1.56, surpassing analyst estimates of $1.44. Revenue also saw an uptick, rising 13% to reach $1.59 billion, marginally above the consensus forecast of $1.57 billion. Analysts from Raymond (NSE:RYMD) James have expressed confidence in Broadridge’s performance, raising their price target for the company to $256. They highlighted Broadridge’s potential to reach the upper end of its full-year recurring revenue and earnings per share guidance. The firm’s analysts also pointed out that unexpected event-driven revenue provides Broadridge the flexibility to invest in initiatives that are expected to support growth in the fiscal year 2026 and beyond. Broadridge has reiterated its full-year guidance, projecting 6-8% recurring revenue growth and 8-12% adjusted EPS growth for fiscal 2025. The company’s recent developments suggest a positive outlook for future performance.
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