Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - DA Davidson has reiterated its Buy rating and $98.00 price target on SS&C Technologies Holdings, Inc. (NASDAQ:SSNC).
The financial services firm maintained its positive outlook following SS&C’s announcement of a definitive agreement to acquire Calastone from Carlyle for £766 million (US $1.0 billion).
Calastone, headquartered in London, is described as a leading provider of technology solutions to the wealth and asset management industries.
DA Davidson noted that SS&C Technologies is forecast to generate nearly $1.2 billion in free cash flow in 2025, providing the company with "good flexibility to reduce debt, pursue additional acquisitions and/or repurchase shares."
The firm’s maintained Buy rating reflects continued confidence in SS&C’s business strategy and financial position following this acquisition announcement.
In other recent news, SS&C Technologies Holdings, Inc. has announced a definitive agreement to acquire Calastone, the largest global funds network, for approximately $1.03 billion. This acquisition is expected to close in the fourth quarter of 2025, pending regulatory approvals, and aims to enhance SS&C’s position in fund administration and transfer agency services. SS&C plans to finance the purchase through a mix of debt and cash on hand, anticipating that the acquisition will be accretive within 12 months. Additionally, DA Davidson has raised its price target for SS&C Technologies to $98 from $94, maintaining a Buy rating ahead of the company’s second-quarter earnings report. The firm expects SS&C to meet or slightly exceed forecasts for the quarter and believes the company will maintain or slightly adjust its annual guidance. Furthermore, SS&C has expanded its stock repurchase program, authorizing up to $1.5 billion in buybacks, which represents about 7%-8% of the company’s total shares. This move is part of SS&C’s strategy to enhance shareholder value and reflects confidence in its financial stability and growth prospects. DA Davidson’s confidence in SS&C’s financial strategy is bolstered by projected free cash flow of over $1.1 billion in 2025, providing flexibility for debt reduction, further acquisitions, and continued share repurchases.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.