Morgan Stanley analyst Brian Essex in a March 28 note initiatedcoverage of SS&C TechnologiesHoldings Inc. at "equal-weight," saying the company is well-positionedgiven the fee pressure and limited scale faced by asset managers and advisers.
Essex said he expects the company to see growth in certain segmentsgiven its investments in client-facing mobile, software-as-a-service and analyticssolutions. Additionally, the analyst said SS&C is poised for market leadership,adding that its size and domain expertise position it for growth as a consolidator.
However, any benefits from its leadership position are offsetby increased company-specific and market risk, the analyst said. Essex said marketuncertainty pressures the upside given the link between organic revenue performanceand assets under administration. SS&C faces further risk as a consolidator fromits higher leverage levels compared to peers.
Essex set a $68.00 price target. His EPS estimates are $1.15for 2016, $1.64 for 2017 and $1.90 for 2018.