DA Davidson maintains SS&C stock Buy rating, $94 target

Published 27/05/2025, 14:28
DA Davidson maintains SS&C stock Buy rating, $94 target

On Tuesday, DA Davidson reiterated a Buy rating on SS&C Technologies Holdings, Inc. (NASDAQ: NASDAQ:SSNC), with a price target of $94.00. The firm’s analyst highlighted the company’s announcement from earlier in the day regarding the Board of Directors’ approval of an expanded share repurchase program. The new program authorizes SS&C to buy back up to $1.5 billion in shares, which equates to approximately 7%-8% of the company’s total shares at the current price levels.

The analyst from DA Davidson expressed confidence in SS&C’s financial strategy, noting the company’s projected free cash flow of over $1.1 billion in 2025. This strong cash flow is expected to provide SS&C with the flexibility needed to reduce debt, consider further acquisitions, and continue repurchasing shares. The decision to maintain the Buy rating and the $94.00 price target is based on these financial forecasts and the company’s recent actions.

SS&C’s share repurchase program is part of its broader capital allocation strategy. The program’s expansion is seen as a positive move by DA Davidson, signaling the company’s commitment to delivering value to its shareholders. The repurchase of shares can often be interpreted as a sign of confidence by a company in its own financial health and future prospects.

The authorization of a significant share repurchase program like this one demonstrates SS&C’s ability to generate substantial free cash flow and manage its capital effectively. The program also provides a flexible tool for the company to adjust its capital structure and potentially enhance shareholder returns.

In conclusion, DA Davidson’s reaffirmation of the Buy rating and the $94.00 price target for SS&C Technologies Holdings reflects a positive outlook on the company’s financial strategy and its ability to execute share repurchases while maintaining operational and strategic flexibility. The analyst’s comments underscore the firm’s belief in SS&C’s solid financial position and its potential for continued growth and value creation.

In other recent news, SS&C Technologies Holdings, Inc. has announced an expansion of its stock buyback program, with the Board of Directors authorizing a 50% increase, allowing for the repurchase of up to $1.5 billion of its outstanding common stock. Additionally, the company reported its third fiscal quarter results for 2025, which led Raymond (NSE:RYMD) James to maintain a Market Perform rating, citing disappointing total revenue growth despite better quality growth. DA Davidson adjusted SS&C’s price target to $94 from $100, maintaining a Buy rating, following first-quarter earnings that slightly exceeded expectations and led to an upward revision in adjusted net income and EPS guidance by management.

Needham analysts also revised their outlook, decreasing the price target to $90 from $105 while maintaining a Buy rating, after SS&C’s first-quarter results showed a 5.1% year-over-year organic growth. However, they noted a conservative second-quarter guidance due to economic uncertainties. On the other hand, JPMorgan downgraded SS&C from Overweight to Neutral, lowering the price target to $86, reflecting concerns about the company’s ability to achieve organic growth amidst competitive pressures. Despite the varied analyst perspectives, SS&C’s GlobeOp segment has been recognized as a key growth driver, contributing significantly to the company’s overall performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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