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On Monday, RBC Capital Markets sustained their positive stance on Broadridge Financial (NYSE:BR), reiterating an Outperform rating alongside a $259.00 price target. The firm’s confidence in Broadridge stems from the successful launch of a new Wealth Management platform in the fiscal year 2023 and robust recent financial performance, with current revenue reaching $6.77 billion and showing 5.73% growth. RBC anticipates that the fiscal years 2025 and 2026 will showcase consistent financial outcomes, which they believe will be relatively unaffected by macroeconomic fluctuations. According to InvestingPro data, the stock is trading near its 52-week high of $247.01, suggesting strong market confidence in the company’s trajectory.
RBC Capital’s analyst highlighted the company’s improved financial flexibility, noting that Broadridge’s free cash flow conversion has reverted to its historical average of approximately 100%. This return to form is seen as a positive indicator for the company’s ability to generate shareholder value over time. InvestingPro analysis reveals a strong financial health score of GOOD, with particularly robust profitability metrics. The company has maintained an impressive 18-year streak of dividend increases, demonstrating consistent shareholder returns.
The upcoming investor meetings hosted by RBC on May 22nd will feature Broadridge’s CFO, Ashima Ghei, as well as Edings Thibault, the Head of Investor Relations, and Sean Silva, the Senior Director of Investor Relations. These sessions are expected to provide investors with deeper insights into the company’s strategic direction and operational strengths.
Broadridge’s commitment to delivering consistent returns to shareholders is underlined by its recent financial achievements and strategic initiatives. The company’s focus on innovation, as evidenced by the introduction of its new Wealth Management platform, is a key component of its growth strategy moving forward.
Investors and market watchers will likely pay close attention to the outcomes of the upcoming investor meetings, which could provide further clarity on Broadridge’s trajectory and its ability to navigate the evolving financial landscape.
In other recent news, Broadridge Financial Solutions reported its third-quarter 2025 earnings, revealing an adjusted earnings per share (EPS) of $2.44, which slightly surpassed the forecasted $2.41. However, the company’s revenue of $1.81 billion fell short of the anticipated $1.85 billion. Despite the mixed earnings results, Broadridge remains optimistic about its future prospects, expecting full-year recurring revenue growth of 6-8% and adjusted EPS growth in the middle of the 8-12% range. Additionally, the company revised its closed sales guidance to $240-300 million, citing elongated closing processes. In a separate development, Needham initiated coverage on Broadridge Financial with a Buy rating and a price target of $300, highlighting the company’s comprehensive product suite and shareholder-friendly capital allocation strategy. Needham’s analysts expressed confidence in Broadridge’s future performance, citing consistent margin expansion and strategic mergers and acquisitions. These recent developments reflect Broadridge’s ongoing strategic focus on digital solutions and wealth management platforms to drive growth.
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