Raymond James Reiterates Market Perform Rating on SS&C Technologies Holdings, Inc. (SSNC)

Raymond James analyst Patrick O\'Shaughnessy reiterated a Market Perform rating on SS&C Technologies Holdings, Inc. (NASDAQ: SSNC).

The analyst comments "We reiterate our Market Perform rating on SCSC after F3Q25 results that featured disappointing total revenue growth (though we acknowledge quality of growth was better), and (finally) a cut to FY25 guidance. Recall, we grappled with why guidance was maintained following two disappointing quarters to start the year (link), and this has now materialized. A new $200M share repurchase authorization was an exciting headline with results, but commentary on the earnings call suggests capital allocation will incrementally focus on M&A in FY26. We struggle with this considering SCSC is hovering near book value and a double-digit FCF yield, meaning the ROI hurdle for M&A relative to buyback appears meaningful. We suspect this will push returns metrics lower over the near term, and while we are intrigued at valuation levels, it is difficult to argue for valuation multiple improvement considering what appears to be a suboptimal capital allocation plan for now."

For an analyst ratings summary and ratings history on SS&C Technologies Holdings, Inc. click here. For more ratings news on SS&C Technologies Holdings, Inc. click here.

Shares of SS&C Technologies Holdings, Inc. closed at $76.72 yesterday.

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