William Blair analyst Jeff Schmitt has maintained their bullish stance on SSNC stock, giving a Buy rating on July 22.
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Jeff Schmitt has given his Buy rating due to a combination of factors including SS&C Technologies Holdings’ strong financial performance and strategic acquisitions. The company reported adjusted earnings per share that exceeded expectations, driven by higher-than-anticipated organic growth and a robust EBITDA margin approaching 40%. Additionally, SS&C’s recent acquisition of Calastone is expected to enhance growth and positively impact earnings per share within a year.
Looking forward, Schmitt anticipates that SS&C will sustain organic growth around 5%, which is an improvement from its historical rate. This, along with slight margin improvements and effective capital allocation, is projected to result in double-digit earnings growth in the coming years. Furthermore, the potential for increased merger and acquisition activity, contingent on favorable economic conditions, could provide additional upside. With the stock trading at a relatively low valuation, Schmitt believes it is an opportune time to invest in SS&C Technologies Holdings.
In another report released on July 22, D.A. Davidson also maintained a Buy rating on the stock with a $98.00 price target.