2023-04-24 08:33:11 ET
- RBC Capital Markets started coverage of Broadridge Financial Solutions ( NYSE: BR ) with an Outperform rating, calling the stock a "classic compounder."
- As such, the financial solutions provider since 2014 has delivered mid-to-high single-digit recurring revenue growth as well as double-digit adjusted earnings growth, analyst Daniel Perlin wrote in a note. That's on top of its dividend compounded annual growth rate of around 13% from 2015 to 2022.
- In addition to its consistent track record of shareholder returns, Perlin pointed to a number of other positive developments, including Broadridge's ( BR ) "moat in its proxy business, expected improving FCF (free cash flow) conversion, and emerging incremental opportunities in a large addressable market."
- The Outperform rating disagrees with the Quant system rating and the average Wall Street analyst rating, both at Hold.
- Seeking Alpha contributor Yannick Frey also views BR as a Hold, citing the stock's rich valuation.
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Broadridge Financial nabs Outperform rating at RBC, calling it 'classic compounder'