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On Friday, Raymond (NSE:RYMD) James maintained a positive outlook on Broadridge Financial (NYSE:BR) shares, raising the price target from $238.00 to $256.00, while keeping an Outperform rating. The firm’s analysts highlighted Broadridge’s performance in the second fiscal quarter of 2025, noting the company is on track to reach the upper end of its full-year recurring revenue and earnings per share (EPS) guidance. Currently trading at $240.77, just shy of its 52-week high of $241.45, Broadridge has demonstrated strong momentum with an 19% return over the past year. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with 14 additional exclusive insights available to subscribers.
The analysts expressed confidence in Broadridge’s ability to achieve its full-year sales objectives, despite some sales events being deferred to the third quarter. They emphasized the company’s re-accelerating equity position count growth as a positive indicator. The company has maintained steady growth, with revenue increasing by 4.67% over the last twelve months to $6.5 billion. Additionally, Raymond James pointed out that unexpected event-driven revenue gives Broadridge the flexibility to invest in initiatives that are expected to support growth in the fiscal year 2026 and beyond.
Broadridge’s business model, characterized by high barriers to entry and a history of consistent results, was mentioned as a justification for a premium valuation. According to the analysts, this valuation could provide potential upside relative to the company’s current price-to-earnings ratio of 24.6 times the estimated calendar year 2026 EPS.
The firm’s analysts believe that the additional revenue from windfall events will enable Broadridge to continue investing in growth opportunities. They see these investments as likely to contribute to the company’s performance in the upcoming fiscal year and further into the future.
In conclusion, Raymond James’ updated assessment of Broadridge Financial reflects their expectation that the company will continue to perform well and potentially exceed market expectations, based on its strong business fundamentals and strategic investments aimed at long-term growth.
In other recent news, Broadridge Financial Solutions has exceeded fiscal second quarter expectations, with recurring revenues marking a 9% increase year-over-year. The company reported adjusted earnings per share at $1.56, surpassing analyst estimates of $1.44. Revenue also saw an uptick, rising 13% to reach $1.59 billion, marginally above the consensus forecast of $1.57 billion.
Broadridge’s recurring revenues, an important measure for the firm, rose to $980 million, a growth attributed to 7% organic growth and the acquisition of SIS. Event-driven revenues more than doubled to $125 million, spurred by increased volumes of mutual fund communications, while distribution revenues climbed 7% to $484 million.
The company has reiterated its full-year guidance, projecting 6-8% recurring revenue growth on a constant currency basis and 8-12% adjusted EPS growth for fiscal 2025. Broadridge also maintains its forecast for closed sales of $290-$330 million. These developments underscore the recent performance and future expectations for Broadridge as conveyed by the firm and analysts.
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