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With a market cap of $24.8 billion, Broadridge Financial Solutions, Inc. (BR) provides investor communications and technology-driven solutions for the financial services industry. Based in New York, the company is a leading producer and distributor of a variety of documents, including proxies, annual reports, prospectus, and trade confirmations.
Shares of this fintech company have underperformed the broader market over the past 52 weeks. BR has gained 14% over this time frame, while the broader S&P 500 Index ($SPX) has soared 27.5%. In 2024, shares of BR are up 1.8%, compared to SPX’s 17.8% gain on a YTD basis.
Zooming in further, BR has also lagged behind S&P Technology Dividend Aristocrats ETF’s (TDV) 16% gain over the past 52 weeks and 8.4% return on a YTD basis.
Shares of BR rose 4.8% on Aug. 6 following its Q4 earnings release due to its adjusted earnings of $3.50 per share beating expectations, and the company reported a 6% year-over-year increase in revenues, primarily driven by growth in recurring and event-driven. The positive fiscal 2025 guidance and strategic investments further boosted investor confidence, despite a slight revenue miss.
For the current fiscal year, ending in June 2025, analysts expect BR’s EPS to grow almost 10% year over year to $8.50. The company’s earnings surprise history is promising. It beat or met the consensus estimates in each of the last four quarters.
Among the seven analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on one “Strong Buy” rating, two “Moderate Buys,” and four “Holds.”
On Aug. 7, RBC Capital Markets maintained an “Outperform” rating on Broadridge Financial and raised the price target to $246 - the Street-high price target, highlighting strong Q4 earnings, solid sales growth, and positive fiscal 2025 guidance. This implies a potential upside of 17.5% from the current price levels.
The mean price target of $221.83 represents a premium of only 5.9% to BR’s current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
