Donnelley Financial Solutions, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Kyle Peterson from Needham reiterated a Buy rating on the stock and has a $72.00 price target.
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Kyle Peterson has given his Buy rating due to a combination of factors related to Donnelley Financial Solutions’ recent performance and future potential. Despite the mixed results in the second quarter, where revenue fell short of expectations primarily due to weaker print revenue, the company showed strength in its software segment, surpassing expectations. Additionally, the company’s efficiency improvements and shareholder returns through buybacks contributed positively to its financial performance, with EBITDA and EPS exceeding market estimates.
While the guidance for the third quarter was below consensus, reflecting cautiousness in capital markets revenue expectations, the current valuation presents an attractive opportunity. The shares are trading at a relatively low price-to-earnings multiple for fiscal year 2026, which suggests a favorable risk-reward scenario for investors, particularly those interested in small-cap stocks. This valuation, combined with the company’s ongoing strategic initiatives, underpins the Buy rating.
Based on the recent corporate insider activity of 42 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 DFIN in relation to earlier this year.