Monday, SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) experienced a change in its stock outlook as DA Davidson analyst Peter Heckmann adjusted the company’s price target. The new target is set at $94.00, a decrease from the previous $100.00, while the Buy rating remains unchanged. This revision follows SS&C’s first-quarter earnings report which showed total revenue and adjusted EBITDA slightly surpassing the analyst’s expectations.
Heckmann’s commentary highlighted the company’s performance, noting that SS&C’s management had revised their 2025 adjusted net income and adjusted EPS guidance upwards by approximately 0.7% each. Despite the positive adjustment in guidance, the analyst found it necessary to recalibrate the price target for SS&C shares. He mentioned that the updated forecasts were fine-tuned in response to the latest results, although the annual changes were not significant.
The maintained Buy rating indicates that DA Davidson continues to see SS&C as a favorable investment, even with the reduced price target. The analyst’s decision to lower the target to $94 from $100 reflects a cautious but still optimistic stance on the stock’s potential.
SS&C’s first-quarter achievements, which slightly exceeded forecasts, have led to a refined financial outlook for the company. Management’s confidence is reflected in the increased guidance for adjusted net income and EPS, which are key indicators of the company’s financial health and performance.
In summary, SS&C Technologies Holdings’ stock retains a positive rating from DA Davidson, with the firm’s analysts seeing continued value in the company despite a modest reduction in the price target. This adjustment comes on the heels of SS&C’s latest financial results and an improved earnings outlook for the year 2025.
In other recent news, SS&C Technologies Holdings Inc. reported its first-quarter financial results for 2025, which showed earnings per share (EPS) of $1.44, surpassing the forecast of $1.41. Revenue grew by 5.5% year-over-year to $1.51 billion, although it slightly missed the anticipated $1.52 billion. The company’s GlobeOp segment was a notable contributor, achieving a 10.3% increase in organic growth. Despite these positive results, JPMorgan (NYSE:JPM) downgraded SS&C Technologies from Overweight to Neutral, reducing the price target to $86, due to concerns about the company’s ability to maintain organic growth amid increased competition.
Needham analysts also adjusted their outlook on SS&C, lowering the price target to $90 from $105 while maintaining a Buy rating, reflecting a cautious stance given the broader financial technology sector’s valuation contraction. The tempered guidance for the second quarter and conservative projections for the fiscal year 2025 were attributed to economic uncertainties. However, Needham remains optimistic about potential improvements in the latter half of the year, anticipating steady margin improvements and effective capital allocation strategies.
SS&C’s strategic focus includes international expansion and AI-driven innovation, which the company expects to drive growth in the latter half of 2025. The acquisition of Insignia Financial is expected to contribute between $35 million and $70 million, emphasizing SS&C’s commitment to expanding its global footprint. The company projects full-year revenue between $6.11 billion and $6.238 billion, with an adjusted diluted EPS ranging from $5.68 to $6.00.
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