Morgan Stanley analyst Ryan Kenny maintained a Buy rating on SEI Investments Company today and set a price target of $105.00.
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Ryan Kenny has given his Buy rating due to a combination of factors that highlight SEI Investments Company’s potential for growth and value appreciation. One of the primary reasons is the company’s margin expansion, particularly in its Private Banks segment, which has shown consistent improvement over several quarters. This segment has achieved margins above 10% for seven consecutive quarters, with expectations to reach 20% by 2027. The focus on servicing regional banks, which typically offer higher margins and less bespoke costs, is a strategic advantage for SEIC.
Additionally, Ryan Kenny notes the company’s strong net sales momentum, driven by a revamped strategy under the leadership of CEO Ryan Hicke. The introduction of a new enterprise sales team and a quarterly sales council has significantly boosted net new sales figures, indicating a positive trend. Furthermore, the company’s increasing exposure to alternatives and the upcoming Investor Day are seen as catalysts that could further enhance SEIC’s market valuation, potentially raising its earnings multiple closer to historical levels.
According to TipRanks, Kenny is an analyst with an average return of -2.2% and a 40.24% success rate. Kenny covers the Financial sector, focusing on stocks such as SEI Investments Company, Jefferies, and Lazard.
In another report released on September 6, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $99.00 price target.