UPDATE: Credit Suisse Upgrades Broadridge Financial Solutions On Resilient Business Model

In a report published Thursday, Credit Suisse analyst Georgios Mihalos upgraded the rating on

from Neutral to Outperform, and raised the price target from $45.00 to $55.00. In the report, Credit Suisse noted, “We are upgrading shares of Broadridge to Outperform from Neutral and raising our target price to $55, based on 17x our CY16E FCF (19.5x adj. EPS). We view BR in a similar vein to ADP – a defensive franchise business with recurring revenue, outsized FCF generation, high barriers to entry and a strong management team focused on Total Shareholder Return. Much like ADP, in a choppy market, we think BR outperforms. We expect BR to post long-term mid-teens Total Shareholder Returns (TSR), with low d-d organic adj. EPS growth augmented by a generous dividend (2.3% yield), buybacks and tuck-in M&A.” Broadridge Financial Solutions closed on Wednesday at $47.80.