Broadridge Financial Solutions: Buy Rating Backed by Product Expansion and Strategic Capital Allocation

Broadridge Financial Solutions (BR) has received a new Buy rating, initiated by Needham analyst, Kyle Peterson.

Kyle Peterson has given his Buy rating due to a combination of factors including Broadridge Financial Solutions’ extensive product suite that supports global trade processing and investor communications across various asset classes. The company’s strategic focus on expanding its offerings and the increasing investment positions by clients are seen as positive drivers for organic growth.
Additionally, Peterson highlights Broadridge’s consistent margin expansion and its shareholder-friendly capital allocation strategy, which effectively balances mergers and acquisitions with dividends and stock buybacks. These elements contribute to the stock’s premium valuation, justifying the $300 price target based on a projected FY27 P/E multiple of 30x.

In another report released on May 1, RBC Capital also maintained a Buy rating on the stock with a $259.00 price target.

Based on the recent corporate insider activity of 127 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BR in relation to earlier this year.