Morgan Stanley analyst James Faucette maintained a Hold rating on SS&C Technologies Holdings today and set a price target of $92.00.
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James Faucette has given his Hold rating due to a combination of factors influencing SS&C Technologies Holdings. The company demonstrated a notable sequential increase in organic growth during the third quarter, with adjusted organic revenue growth reaching 5.2% year-over-year, an improvement from previous quarters. This growth was supported by factors such as the Australia lift-out and strong performance in international private markets and retail alternatives.
However, despite these positive developments, there are concerns regarding the sustainability of private credit, as highlighted by the CEO’s comments on the lack of data to support its durability. Additionally, the anticipated organic growth rate for the fourth quarter includes contributions from Battea, which are expected to be lower than initially forecasted. These mixed signals, along with the modest upside potential and largely unchanged financial results, contribute to the Hold rating, reflecting a cautious but optimistic outlook for the company’s future performance.