DA Davidson lifts SS&C stock target to $102, maintains buy rating

On Friday, DA Davidson raised the price target for SS&C Technologies Holdings, Inc. (NASDAQ: NASDAQ:SSNC) to $102 from the previous $92, while reiterating a Buy rating on the stock. The adjustment followed SS&C’s fourth-quarter earnings report, which showed total revenue and adjusted EBITDA surpassing DA Davidson’s estimates by 3% and 1%, respectively.

SS&C’s management also provided initial guidance for 2025, which is in line with DA Davidson’s and consensus forecasts. The guidance anticipates year-over-year growth in adjusted revenue between 3.4% and 6.1%, with a midpoint expectation of 5.0% in constant currency, organic growth. Additionally, the company projects adjusted earnings per share (EPS) to be between $5.64 and $5.96, reflecting a 4% to 10% increase year-over-year.

In response to the company’s performance and outlook, DA Davidson analyst Peter Heckmann stated, "SS&C reported 4Q results with total revenue 3% above our forecast and adjusted EBITDA 1% above our forecasts. With results, management introduced their initial guidance for 2025, which bracketed our forecasts (and consensus)."

Heckmann further elaborated on the firm’s position, "Following the update, we have fine-tuned our forecasts, but the changes on an annual basis are modest. We are maintaining our BUY rating on SS&C and raising our price target to $102 (from $92)." The revised price target represents DA Davidson’s confidence in SS&C’s continued growth and financial performance.

SS&C Technologies Holdings, Inc. is a global provider of services and software for the financial services and healthcare industries. The company’s increased guidance and strong fourth-quarter results have contributed to the positive outlook reflected in DA Davidson’s updated analysis.

In other recent news, SS&C Technologies has been in the spotlight due to several significant developments. The company’s fourth-quarter results showcased a 7% year-over-year increase in organic growth, exceeding expectations and driving Needham analysts to raise their price target for the company to $105. This growth was led by the intelligent automation and analytics segment, which saw an 11% year-over-year increase.

In addition to financial performance, SS&C Technologies has made strategic moves to expand its capabilities. The company recently acquired FPS Trust Company, which is expected to enhance its benefit payment solutions for institutional clients. This acquisition follows the company’s unveiling of new software-as-a-service (SaaS) updates for alternative investment managers, further demonstrating its commitment to providing scalable solutions.

In the realm of analyst assessments, Jefferies upgraded SS&C Technologies from Hold to Buy, significantly raising the price target from $70.00 to $94.00. This upgrade reflects a positive outlook on the company’s future performance, with the analyst citing several key factors contributing to the decision.

SS&C Technologies has also solidified its ongoing partnership with Omnis Investments Limited, a prominent U.K. asset manager overseeing more than GBP10 billion. This renewal of their transfer agency relationship will continue to support Omnis’s suite of mutual funds. These are the recent developments that have shaped the trajectory of SS&C Technologies.

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