RBC Capital has trimmed its price target on Broadridge Financial (NYSE:BR) to $245.00 from $265.00, yet the brokerage kept an Outperform rating for the shares. At the same time, the stock is trading near its 52-week low at $185.95, with InvestingPro data cited as indicating the shares are currently undervalued.
Analyst Daniel Perlin noted that Broadridge's latest quarterly results topped both RBC Capital's and consensus Street estimates. The company is trading at a price-to-earnings ratio of 23.76, while its price/earnings-to-growth (PEG) ratio stands at 0.71, metrics that Perlin flagged as suggesting the stock remains attractively priced relative to its growth profile.
Management maintained its fiscal year 2026 recurring revenue growth expectations and revised its FY26 adjusted earnings per share growth guidance upward, narrowing the range to 9-12% from the prior 8-12% band. Those moves reflect confidence in the underlying business momentum following the quarter.
A notable element of the report was event-driven revenue of $90.6 million, a figure materially above RBC's $54.6 million estimate and the Street consensus of $58 million. Broadridge said it directed the unexpected revenue upside toward accelerating innovation initiatives, citing areas such as tokenization, shareholder engagement solutions, and digital communications as priorities for investment.
Separately, Broadridge reported second-quarter fiscal 2026 results that exceeded analyst expectations and raised full-year earnings guidance, signaling management's positive view on near-term performance. Market responses have varied: Raymond James pared its price target on Broadridge to $257.00 from $276.00 but preserved an Outperform rating, describing the quarter as strong and reiterating that the drivers of long-term revenue and EPS growth remain robust.
The combination of better-than-expected results, a meaningful event-driven revenue beat, and tightened EPS guidance contrasts with a lower price target from RBC and a share price sitting near its annual low. Investors and analysts appear to be weighing the company's updated guidance and innovation investments against near-term valuation and market sentiment.
Key takeaways
- RBC lowered its price target to $245 but kept an Outperform rating on Broadridge.
- Broadridge beat expectations with event-driven revenue of $90.6 million, well above both RBC and Street estimates.
- The company maintained FY26 recurring revenue growth expectations and tightened FY26 adjusted EPS growth to 9-12% from 8-12%.
Risk factors and uncertainties
- Share price volatility - The stock sits near its 52-week low at $185.95, exposing investors to near-term downside risk.
- Analyst target variability - Differing price-target adjustments, such as RBC's cut and Raymond James' reduction, show mixed market perceptions that could impact investor sentiment.
- Concentration of upside - A significant portion of the quarter's upside came from event-driven revenue, which may be less predictable than recurring revenue streams.