Bernstein sees TI’s likely price hike benefiting Infineon, Renesas stock
Thursday saw Piper Sandler analyst firm increase the price target for SEI Investments (NASDAQ:SEIC) stock to $79, up from the previous target of $74, while maintaining a Neutral rating on the shares. This adjustment follows SEI Investments’ announcement of a strong quarterly performance, which included a core earnings beat and a record quarter for sales events. According to InvestingPro data, the company maintains robust financials with a market cap of $9.3 billion and an attractive PEG ratio of 0.58, suggesting reasonable valuation relative to growth potential.
SEI Investments reported an increase in operating margins to 28.5% from 27.5%, attributing the improvement to recent momentum. The company’s impressive gross profit margin of 78.9% and consistent dividend payments for 37 consecutive years demonstrate long-term operational excellence. Despite this progress, Piper Sandler anticipates a potential slight decline in margins in the upcoming quarters due to upfront expenses related to the recent sales events. The firm also noted SEI’s continued strong performance in sales events as an encouraging sign.
Management at SEI Investments has indicated that they have not observed any slowdown in activity due to current macroeconomic volatility. This aspect, however, remains a critical area to monitor given the prevailing uncertainty in the market.
Following the quarterly results, Piper Sandler has revised its earnings per share (EPS) estimates for SEI Investments for the years 2025 and 2026. The new estimates are now $4.64 and $4.94, up from the previous projections of $4.36 and $4.72, respectively. The revised price target of $79 is based on approximately 17 times the unchanged 2025 EPS estimate.
Piper Sandler’s analysis suggests that SEI Investments stock is expected to perform well, particularly in light of the positive quarterly report. The firm’s outlook remains cautiously optimistic as they continue to track the company’s progress in the face of broader economic challenges.
In other recent news, SEI Investments Company reported its Q1 2025 earnings, with earnings per share (EPS) surpassing analyst expectations at $1.17 compared to the forecasted $1.15. Despite this positive earnings surprise, the company’s revenue slightly missed projections, coming in at $551.34 million against an expected $556.76 million. SEI maintained a robust operating profit margin of 28.5%, marking its highest in three years. The company also highlighted its strong cash position, with over $700 million and no long-term debt, and continued strategic growth through product launches and acquisitions. Additionally, SEI announced the sale of its family office services business, believing that the acquirer, Aquiline, is well-positioned to accelerate the platform’s growth. Analysts have noted SEI’s strong performance, attributing it to strategic initiatives and market expansion. The company’s strategic direction and financial stability have been well-received, reflecting confidence among investors.
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