Needham analyst Mayank Tandon has reiterated their bullish stance on SSNC stock, giving a Buy rating yesterday.
Mayank Tandon’s rating is based on the robust performance and positive growth trends of SS&C Technologies Holdings. The company’s first-quarter results surpassed expectations with notable strength in its Alternatives, Wealth, and Investment Technologies sectors, alongside the Intralinks business. This has led to a commendable organic growth rate increase, from 4.5% in the previous quarter to 4.7%. Additionally, the company’s management has forecasted a second-quarter outlook that encompasses current consensus estimates and has raised the full-year revenue and earnings per share guidance for FY24.
The Buy rating is further justified by SS&C Technologies’ proactive capital management strategy, which includes a steady repurchase of shares and a commitment to debt reduction to lower leverage. With the stock trading at an approximate price-to-earnings multiple of 11 times the FY25 estimate, which is below the company’s historical average valuation, Tandon perceives a favorable risk-reward scenario. This assessment has prompted a slight increase in the target price to $74, reflecting the company’s positive momentum and an improving organic growth trajectory.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $72.00 price target.
Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SSNC in relation to earlier this year.
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SS&C Technologies Holdings (SSNC) Company Description:
SS&C Technologies Holdings, Inc. engages in the development and provision of software solutions. Its portfolio of products provides functions including trading and modeling, middle-office functions such as portfolio management and reporting, and back-office functions such as accounting, performance measurement, reconciliation, reporting, processing and clearing. It also caters to the institutional asset and wealth management, alternative investment management, financial advisory, and financial institutions vertical markets. The firm’s services include managed, professional, technology & operations outsourcing and fund administration services. The company was founded by William Charles Stone in February 1986 and is headquartered in Windsor, CT.
