UPDATE: William Blair Starts SS&C Technologies Holdings, Inc. (SSNC) at Outperform
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William Blair analyst Jeff Schmitt initiates coverage on SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) with a Outperform rating.
The analyst comments "We are assuming coverage of SS&C at Outperform. It is the largest alternative fund administrator and mutual fund transfer agent in the world and recently expanded beyond financial services into the healthcare vertical. We like its leadership positions, high recurring revenues, diversified revenue streams, and strong margins.In addition, its aggressive M&A strategy stands out and has enabled it to compound revenue and earnings at 30% per year despite modest organic growth prospects. Future M&A is rarely modeled in, which means upward EPS revisions are the norm.The stock trades at only 11 times our 2023 EPS estimate versus 15-16 times historically. We like the stock over the longer term because of its M&A strategy and see upside potential of 25%-35% over the next 12-18 months, excluding new deals."
Shares of SS&C Technologies Holdings, Inc. closed at $62.79 yesterday.
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