DA Davidson has revised its price target for SS&C Technologies (SSNC, Financial), reducing it from $100 to $94 while maintaining a Buy rating on the stock. The adjustment follows the company's first-quarter financial performance, which showed steady progress. SS&C reported an organic growth rate of 5.1% in constant currency terms, reflecting a robust start to the year. However, the company's future outlook remains largely unchanged, according to the analyst's research note.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for SS&C Technologies Holdings Inc (SSNC, Financial) is $93.54 with a high estimate of $105.00 and a low estimate of $75.00. The average target implies an upside of 28.69% from the current price of $72.69. More detailed estimate data can be found on the SS&C Technologies Holdings Inc (SSNC) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, SS&C Technologies Holdings Inc's (SSNC, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SS&C Technologies Holdings Inc (SSNC, Financial) in one year is $71.65, suggesting a downside of 1.43% from the current price of $72.69. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SS&C Technologies Holdings Inc (SSNC) Summary page.
SSNC Key Business Developments
Release Date: February 06, 2025
- Adjusted Revenue: $1.531 billion, up 8.4% from Q4 2023.
- Adjusted Diluted EPS: $1.58, up 25.4% from Q4 2023.
- Adjusted Consolidated EBITDA: $599.1 million, up 6.5% from Q4 2023.
- Adjusted Consolidated EBITDA Margin: 39.1%.
- Adjusted Organic Revenue Growth: 7% for Q4 2024.
- Recurring Revenue Growth Rate for Financial Services: 7.4% for Q4 2024.
- Cash from Operating Activities: $486.6 million, up 25.3% from Q4 2023.
- Share Repurchases: 4.9 million shares for $365 million at an average price of $74.46 per share.
- Net Income: $248 million for Q4 2024.
- GAAP Revenue: $1.53 billion for Q4 2024.
- Net Debt: $6.6 billion.
- Total Leverage Ratio: 2.89 times.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SS&C Technologies Holdings Inc (SSNC, Financial) reported record adjusted revenue of $1.531 billion for Q4 2024, marking an 8.4% increase.
- The company achieved a record adjusted diluted earnings per share of $1.58, up 25.4% from the previous year.
- Adjusted consolidated EBITDA reached $599.1 million, with a margin of 39.1%, indicating strong profitability.
- The company experienced significant growth in its GlobeOp, Wealth and Investment Technologies, and Global Investor Distribution Services businesses.
- SS&C Technologies Holdings Inc (SSNC) completed a strategic agreement with Insignia Financial, expanding its presence in the Australian superannuation market.
Negative Points
- Core expenses increased by 8.3%, driven by higher incentive compensation, commissions, and wages.
- The company faces challenges in projecting short-term revenue in the Healthcare sector due to the deliberate purchasing behavior of large healthcare clients.
- SS&C Technologies Holdings Inc (SSNC) has a high net debt of $6.6 billion, which could impact financial flexibility.
- The company anticipates a lower organic revenue growth rate of 4% for Q1 2025, compared to the 7% achieved in Q4 2024.
- There is uncertainty regarding the impact of potential regulatory changes in Europe on SS&C Technologies Holdings Inc (SSNC)'s regulatory and filing business.
