In a report released today, Kyle Peterson from Needham reiterated a Buy rating on Donnelley Financial Solutions (DFIN – Research Report), with a price target of $72.00.
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Kyle Peterson’s rating is based on Donnelley Financial Solutions’ strong quarterly performance, where the company exceeded expectations in both revenue and earnings. This success was driven by favorable trends in capital markets and effective cost management, which significantly improved profit margins.
Additionally, the company’s increased stock buyback program, with approximately 5% of outstanding shares repurchased year-to-date, reflects a commitment to returning value to shareholders. Despite potential short-term growth challenges, Peterson believes that the focus on margin expansion and share repurchases will enable the stock to perform well. The current valuation, with a price-to-earnings multiple of 11.5x for fiscal year 2026, presents an attractive opportunity for growth-at-a-reasonable-price investors.
Peterson covers the Industrials sector, focusing on stocks such as TriNet Group, Equifax, and TransUnion. According to TipRanks, Peterson has an average return of 0.1% and a 42.53% success rate on recommended stocks.
In another report released on April 16, D.A. Davidson also maintained a Buy rating on the stock with a $64.00 price target.