Market Overview

Broadridge Financial Poised For Revenue Recovery, Raymond James Says In Upgrade

Broadridge Financial Poised For Revenue Recovery, Raymond James Says In Upgrade

Broadridge Financial Solutions, Inc. (NYSE: BR) could return to the organic recurring revenue growth rate of 5-7 percent targeted by the company on the back of a reacceleration in revenue growth in its Global Technology & Operations — GTO — segment over the next few quarters, according to Raymond James.

The Analyst

Raymond James’ Patrick O'Shaughnessy upgraded Broadridge from Market Perform to Outperform and set a $118 price target. 

The Thesis

The shareholder communications services company, founded as a spin-off from Automatic Data Processing (NASDAQ: ADP), has been witnessing meaningful pressure on its revenue growth, O'Shaughnessy said in the Wednesday upgrade note. 

The analyst said he expects revenue growth to decline from the 9 percent achieved in fiscal 2018 to 4 percent in fiscal 2019. 

Broadridge’s solid closed-sales activity and growing backlog of larger deals should convert into revenue going ahead, boosting growth back to 7 percent in fiscal 2020, in Raymond James' view. 

The company has indicated that a large global post-trade processing contract with a major bank could begin in the fourth quarter, O'Shaughnessy said. Broadridge has also won several contracts from Asian and European banks in post-trade processing, corporate actions and other newer solutions, he said. 

“We believe Broadridge’s current valuation offers investors an attractive entry point into a differentiated, high barrier-to-entry business." 

Price Action

Broadridge Financial shares were up 3.61 percent at $104.07 at the time of publication Wednesday. 

Related Links:

Benzinga's Top Upgrades, Downgrades For March 13, 2019

72 Biggest Movers From Yesterday

Latest Ratings for BR

Aug 2020RosenblattMaintainsNeutral
Aug 2020BTIGDowngradesBuyNeutral
Aug 2020DA DavidsonDowngradesBuyNeutral

View More Analyst Ratings for BR
View the Latest Analyst Ratings


Related Articles (BR)

View Comments and Join the Discussion!

Posted-In: Patrick O'Shaughnessy Raymond JamesAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

ELANMorgan StanleyMaintains41.0
ECLMorgan StanleyMaintains210.0
ETNMorgan StanleyMaintains121.0
CBMorgan StanleyMaintains149.0
BROMorgan StanleyMaintains50.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at