D.A. Davidson & Co. analyst Peter Heckmann initiated coverage of Broadridge Financial Solutions Inc. with a "neutral" rating, writing that the company has had a strong track record of earnings growth and returning cash to shareholders since 2012.
Heckmann wrote that Broadridge can produce organic revenue growth in the 3% to 6% range with steady margin expansion and continued share repurchases, combined to create adjusted EPS growth in the 9% to 12% range. If the company can complete more deals at terms similar to its previous acquisitions, that could be accretive to earnings forecasts, he added. The company's shares currently trade at a price D.A. Davidson views as fair, the analyst wrote.
Heckmann set a 12-month price target for the company's stock at $74. His EPS estimates are $3.20 for 2017 and $3.56 for 2018.