SEI Investments Company, the Financial sector company, was revisited by a Wall Street analyst on July 18. Analyst Ryan Kenny from Morgan Stanley maintained a Buy rating on the stock and has a $102.00 price target.
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Ryan Kenny has given his Buy rating due to a combination of factors surrounding SEI Investments Company’s strategic acquisition of a majority stake in Stratos. This move provides SEIC with an established and scalable platform in the rapidly growing RIA space, enhancing its wealth management capabilities. The acquisition is expected to be immediately beneficial to SEIC’s earnings per share, reflecting positively on its financial performance.
Furthermore, Stratos’ strong EBITDA margins, which exceed SEIC’s current margins, indicate a high return on capital. The complementary offerings between SEIC and Stratos, such as advisor acquisition and integration, are poised to strengthen SEIC’s wealth ecosystem. This strategic alignment, coupled with SEIC’s robust financial position and expertise in financial services technology, supports the rationale for a Buy rating.
In another report released on July 8, Oppenheimer also maintained a Buy rating on the stock with a $101.00 price target.