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On Friday, Needham analysts increased their price target for SS&C Technologies Holdings, Inc. (NASDAQ: NASDAQ:SSNC) shares to $105 from the previous $90, maintaining a Buy rating. The firm’s decision followed the company’s fourth-quarter results, which exceeded expectations due to robust organic growth. SS&C Technologies reported a 7% year-over-year increase in organic growth as all of its core businesses demonstrated healthy expansion.
The growth was spearheaded by the intelligent automation and analytics segment, which saw an 11% year-over-year increase. Additionally, GlobeOps posted an 8% growth, and the healthcare segment showed a positive turnaround with an 8.7% rise, attributed to significant license deals secured during the quarter. Despite the strong performance, SS&C Technologies’ guidance for the fiscal year 2025 suggests a slower start to the year with a mixed first-quarter outlook.
Needham views the company’s initial 5% year-over-year organic growth forecast for the first quarter as conservative. Analysts at Needham believe there is potential for SS&C Technologies’ shares to undergo a re-rating driven by the possibility of above-trend organic growth, continued margin expansion, and an efficient strategy for capital deployment. The firm’s analysts are reiterating their Buy rating and have raised their target to $105, reflecting their confidence in the company’s growth trajectory and future performance.
In other recent news, SS&C Technologies has made several strategic moves. The company acquired FPS Trust Company, expanding its benefit payment solutions for institutional clients. This acquisition will see FPS Trust integrated into SS&C Innovest, a division within SS&C, enhancing the managed services offered to institutional customers.
In the world of analyst ratings, Jefferies upgraded SS&C Technologies from Hold to Buy, setting a new target price of $94. This upgrade reflects a positive outlook on the company’s future performance, with the analyst citing key factors such as the potential for new customer acquisitions and improving conditions in the capital markets.
SS&C Technologies also rolled out new software-as-a-service updates for alternative investment managers. These updates aim to provide scalable solutions tailored to the global market, emphasizing efficiency in credit, derivatives, and investor accounting management. The company also renewed its contract with Omnis Investments Limited, continuing to support Omnis’s suite of mutual funds.
RBC Capital Markets highlighted SS&C Technologies as one of its top five investment ideas for fiscal year 2025. This selection reflects a strategic balance between steady performers and companies positioned for growth or undergoing significant changes. These recent developments underscore SS&C Technologies’ ongoing commitment to enhancing its services and offerings.
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