Donnelley Financial price target raised to $74 from $64 at DA Davidson

Investing.com - DA Davidson raised its price target on Donnelley Financial Solutions (NYSE:DFIN) to $74.00 from $64.00 on Tuesday, while maintaining a Buy rating on the stock. The $1.75 billion market cap company, currently trading at a P/E of 20.5x, is valued near its Fair Value according to InvestingPro analysis.

The firm adjusted its second-quarter forecasts for Donnelley Financial, trimming expectations to reflect "slightly more drag" from Transactional Capital Markets activity. This aligns with InvestingPro data showing three analysts recently revising their earnings estimates downward, though the company maintains strong profitability with $151.1M in EBITDA over the last twelve months.

DA Davidson reduced its second-quarter total revenue forecast by 1% to $224 million and similarly cut its adjusted EBITDA forecast by 1% to $74 million.

The research firm expects Donnelley Financial to report its second-quarter results within the next three weeks, with management likely to provide third-quarter guidance ranges that align with current forecasts and consensus estimates.

The price target increase reflects DA Davidson’s shift to using 2027 forecasts in its valuation framework for Donnelley Financial Solutions.

In other recent news, Donnelley Financial Solutions announced its first-quarter 2025 earnings, reporting an adjusted earnings per share (EPS) of $1.05, significantly surpassing the forecast of $0.74. The company also exceeded revenue expectations, bringing in $201.1 million compared to the anticipated $195.17 million. This performance was marked by a 23.6% year-over-year increase in adjusted EBITDA. Additionally, Donnelley Financial Solutions has been actively repurchasing shares, with approximately 861,000 shares bought back for $41.8 million during the first quarter. Following its Annual Meeting of Stockholders, the company authorized a new share repurchase program allowing for the buyback of up to $150 million of its outstanding common stock through December 31, 2026. Shareholders also approved several proposals, including an advisory resolution on executive compensation and the appointment of Deloitte & Touche LLP as the independent auditor for fiscal year 2025. These developments reflect ongoing strategic initiatives and shareholder relations efforts at Donnelley Financial Solutions.

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