SEIC - SEI Investments started at Neutral at Piper as scale efforts 'may take time'

2023-03-29 16:50:58 ET

• Piper Sander on Wednesday initiated coverage of SEI Investments Company ( NASDAQ: SEIC ) with a Neutral rating as its recent organic growth efforts "should scale but may take time while its Private Banking segment margins remain depressed and are held back by tepid revenue growth."
• SEI's ( SEIC ) assets under management and administration have been volatile over the last several quarters and "could hamper meaningful revenue growth in '23" should that volatility persist, analyst Sumeet Mody wrote in a note.
• In the coming years, however, the company's other three business lines that account for 70% of its revenue mix are expected to fare well, he contended.
• The analyst sees SEIC trading at 14 times his 2024 EPS estimate, calling the stock fairly valued. SEIC ended Wednesday's session with a 1.3% gain but remained lower by 4.3% year-to-date.
• The Neutral rating agrees with the Quant system rating and the average Wall Street analyst rating, both at Hold.
• Previously, (Jan. 25) SEI Investments ( SEIC ) Q4 GAAP EPS of $0.83 beats by $0.04, revenue of $456.59M in-line .

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