Key Stats for Broadridge Stock
- Price Change: -6.0%
- Current Price: ~$182
- Advanced Model Target: $269
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What Happened?
Shares of Broadridge Financial Solutions, Inc. (BR) fell 6.0% to close near $182 on Friday, hitting a new 52-week low as investors sold the news following the company’s fiscal second-quarter report.
Despite reporting recurring revenue growth of 6% to $953 million, the market was unimpressed by the lack of a “beat and raise” catalyst in a jittery tape.
Moreover, traders appeared frustrated by the “in-line” nature of the results, as adjusted EPS of $1.05 merely met expectations, failing to provide the spark needed to reverse the stock’s recent downtrend.
During the earnings call, CEO Tim Gokey reiterated the company’s full-year guidance, projecting recurring revenue growth of 5-7%.
However, the “status quo” outlook was not enough to satisfy growth-hungry investors.
The selloff has compressed Broadridge’s valuation to just 18.7x NTM P/E, a rarity for a “Dividend Aristocrat” contender with such a wide competitive moat.
Furthermore, analysts at DA Davidson maintained their Buy rating, emphasizing that the company’s backlog of closed sales remains at record levels
This sets the stage for accelerating growth in the second half of the fiscal year.
The disconnect between the steady operational performance and the plummeting stock price suggests a classic “baby out with the bathwater” scenario.
See analysts’ growth forecasts and price targets for Broadridge stock (It’s free!) >>>
Is Broadridge Undervalued Today?
During the earnings call, CEO Tim Gokey addressed the market’s concerns directly, focusing on the long-term compounding engine.
He stated: “We are executing on our long-term growth strategy… The demand for our governance, capital markets, and wealth management solutions remains robust.”
Gokey highlighted that the company is seeing “strong growth” in its Global Technology and Operations segment, driven by large bank clients outsourcing their back-office functions.
To reinforce the stability of the business model, he added: “We are increasing our investments… and we expect those investments to drive accelerating growth in the second half of the year.”
CFO Ashbel Williams also noted that the company’s cash flow generation remains on track to support another year of double-digit dividend increases.
Read the full Broadridge Transcript on TIKR to see the 2026 Outlook >>>
According to TIKR’s Advanced Valuation Model, the stock is now trading at a massive discount to its fair value.
- Target Price: $269
- Current Price: ~$182
- Potential Upside: +48.0%
Valuation Deep Dive
With the stock trading at ~$182, the market is pricing in a permanent stagnation that contradicts the company’s history of 50+ years of growth.
- The Moat: Broadridge processes over 80% of the proxy votes in North America, a monopoly-like position that provides incredibly sticky revenue.
- The Margin Expansion: The model forecasts Net Income Margins expanding to 16.0% over the next 5 years as the company scales its digital solutions.
- The Value Gap: The $269 target is based on a return to historical valuation multiples, which the stock has deviated from significantly during this correction.
If Broadridge can deliver on its second-half acceleration promise, the re-rating to $269 should be driven by a return of confidence in its “steady compounder” status.
Conclusion: A 52-week low opportunity. With a 48.0% upside potential to $269, Broadridge offers a compelling entry point for dividend growth investors looking to buy a high-quality infrastructure play at a “fire sale” price.
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How Much Upside Does Broadridge Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
