In a report released today, Kyle Peterson from Needham reiterated a Buy rating on Donnelley Financial Solutions (DFIN – Research Report), with a price target of $72.00.
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Kyle Peterson has given his Buy rating due to a combination of factors influencing Donnelley Financial Solutions’ performance. Despite the company’s recent financial results falling short of market expectations, largely due to subdued capital markets activity, there are positive indicators for future growth. Notably, the software segment of the business has grown significantly, now accounting for over 40% of the company’s revenue, which is expected to provide a buffer against fluctuations in transaction volume.
Additionally, Peterson views the recent sharp decline in the company’s share price as an overreaction, suggesting that the stock is undervalued at its current valuation. Given these conditions, including the company’s P/E multiple, he believes that the stock presents a compelling investment opportunity. As a result, although he has adjusted the target price downward, he maintains a Buy rating, anticipating a recovery in the stock’s value over time.
Based on the recent corporate insider activity of 52 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.