William Blair analyst Jeff Schmitt has maintained their bullish stance on SSNC stock, giving a Buy rating today.
Jeff Schmitt has given his Buy rating due to a combination of factors that highlight SS&C Technologies Holdings’ strong financial performance and potential for future growth. The company reported a modest beat in its first-quarter results, with adjusted earnings per share (EPS) surpassing both consensus and internal estimates. This was driven by organic growth that exceeded expectations and continued to outpace historical levels, alongside rising margins despite significant investments in the business.
Furthermore, Schmitt notes that SS&C’s strategic capital allocation is providing additional support for growth, with factors such as declining interest expenses from debt paydowns and increased share buybacks due to the lower stock price. The company is projected to achieve EPS growth in the low teens for the year, with potential upside from large mergers and acquisitions and healthcare sector gains. Despite these positive indicators, the stock is trading below historical valuation levels, presenting an attractive buying opportunity according to Schmitt.
In another report released today, Jefferies also reiterated a Buy rating on the stock with a $94.00 price target.