Deluxe (DLX, Financial) has teamed up with Chargent to introduce a comprehensive payment integration solution within Salesforce. This partnership enables businesses to streamline their billing processes, accept payments, and access real-time transaction data, all directly within the Salesforce platform. The integration combines Chargent's Salesforce-native capabilities with Deluxe's robust merchant processing infrastructure, offering a scalable and secure payment solution. This collaboration aims to accelerate cash flow, minimize manual tasks, and enhance financial transparency for businesses. The new solution is designed to help companies improve efficiency and gain better financial insights through seamless payment processing.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Deluxe Corp (DLX, Financial) is $26.50 with a high estimate of $30.00 and a low estimate of $23.00. The average target implies an upside of 72.64% from the current price of $15.35. More detailed estimate data can be found on the Deluxe Corp (DLX) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Deluxe Corp's (DLX, Financial) average brokerage recommendation is currently 2.0, 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 Deluxe Corp (DLX, Financial) in one year is $18.11, suggesting a upside of 17.98% from the current price of $15.35. 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 Deluxe Corp (DLX) Summary page.
DLX Key Business Developments
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Deluxe Corp (DLX, Financial) reported organic growth across key metrics, including revenue, adjusted EBITDA, EPS, and margin for the first quarter of 2025.
- The company achieved a significant year-over-year expansion of operating cash flow, contributing to a reduction in net debt levels.
- Deluxe Corp (DLX) received an S&P ratings upgrade and a positive ratings outlook, reflecting strong progress in balance sheet optimization.
- The data segment experienced a 29% revenue growth year-over-year, driven by demand from financial institutions and the addition of 17 new customer logos.
- The company maintained its overall guidance ranges for 2025, indicating confidence in its strategic execution and market positioning.
Negative Points
- The print segment experienced a 4% year-over-year revenue decline, with legacy check revenues declining by 1.8% and other print areas declining by 7%.
- The merchant services business is expected to remain closer to a lower single-digit full-year revenue growth trajectory due to macroeconomic trends.
- There is ongoing demand softness in shorter cycle discretionary branded promotional products, impacting the print segment.
- The company faces macroeconomic uncertainty and volatility, which could impact consumer sentiment and discretionary spending.
- Medical benefit cost headwinds affected corporate operations, although these are anticipated to be mostly non-recurring.
