Broadridge: Solid Fundamentals and Tokenization Uncertainty Justify Hold Rating and $213 Target

Analyst James Faucette of Morgan Stanley maintained a Hold rating on Broadridge Financial Solutions, reducing the price target to $213.00.

James Faucette has given his Hold rating due to a combination of factors related to Broadridge’s fundamentals and the evolving market structure. He recognizes that Broadridge posted solid F2Q26 results, including an acceleration in key recurring revenue segments and an improved earnings outlook, which underscores the strength and resilience of its core franchise. At the same time, he notes that current experiments with tokenized securities, including early-stage pilots, are still unlikely to meaningfully disrupt Broadridge’s role because securities are expected to remain in book-entry form and continue requiring traditional asset‑servicing functions. Nonetheless, he believes the stock’s valuation multiple is likely to remain capped in the near to medium term as investors grapple with the implications of tokenization, especially headline risks around potential peer‑to‑peer trading that bypasses broker‑dealers.
Faucette therefore adjusts his price target to $213, anchoring it to Broadridge’s historical two‑year forward EV/EBITDA median, which he sees as a fair reflection of the balance between upside from solid execution and downside from structural uncertainty. The maintained Hold rating reflects his view that, while the business remains fundamentally sound and near‑term financial performance is positive, the risk‑reward profile is relatively balanced given innovation in market plumbing and lingering questions about long‑term business model durability in a tokenized equity environment. In his assessment, investors should monitor how the framework for investor outreach and servicing of tokenized securities ultimately evolves before assigning a higher multiple to the shares.

In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a $229.00 price target.

Based on the recent corporate insider activity of 100 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.