Analyst Ratings January 29, 2026

Piper Sandler Lifts SEI Investments Price Target to $109 After Strong Quarter

Broker raises estimates as SEI posts better-than-expected quarterly results and management signals continued sales momentum

By Derek Hwang SEIC
Piper Sandler Lifts SEI Investments Price Target to $109 After Strong Quarter
SEIC

Piper Sandler increased its price target on SEI Investments to $109 from $102 and kept an Overweight rating after the company reported quarterly results that exceeded expectations. The firm raised its 2026 and 2027 EPS forecasts, reflecting the quarter's strength and the inclusion of Stratos in its model. SEI's margins and revenue growth showed improvement, while management suggested further client momentum into early 2026.

Key Points

  • Piper Sandler raised its price target on SEI Investments to $109 from $102 and kept an Overweight rating.
  • SEI reported stronger-than-expected quarterly results, with core operating margin improving to 30% from 29%, a 78.76% gross profit margin, and 9.44% revenue growth over the last twelve months.
  • Piper Sandler increased EPS estimates to $6.06 for 2026 and $6.87 for 2027 and based the new $109 target on about 18 times its 2026 EPS estimate.

Piper Sandler has raised its price objective for SEI Investments (SEIC) to $109.00 from $102.00, maintaining an Overweight recommendation on the stock. The brokerage's move follows quarterly results that outpaced both consensus estimates and Piper Sandler's own forecasts.

SEI was trading at $86.10 at the time of the update, and one market assessment described the shares as slightly undervalued, with analyst targets extending as high as $120.00.

The catalyst cited for the upward revision was a quarter in which SEI's core earnings per share materially exceeded Street expectations as well as Piper Sandler's prior model. Core operating margin expanded to 30% from 29%, its strongest level in several years according to the results. Those margin gains complement SEI's recently reported 78.76% gross profit margin and 9.44% revenue growth over the last twelve months.

Piper Sandler highlighted that sales events momentum remained positive, consistent with the pattern seen across recent reporting periods. Management commentary accompanying the release expressed optimism about sustaining that momentum and suggested there may be additional high-profile client wins in the first quarter of 2026.

Reflecting the stronger-than-expected performance and the inclusion of Stratos in the firm’s model, Piper Sandler raised its earnings per share projections for SEI to $6.06 for fiscal 2026 and $6.87 for fiscal 2027, up from prior estimates of $5.67 and $6.34, respectively. The updated $109 price target equates to roughly 18 times Piper Sandler’s 2026 EPS estimate, and the firm indicated an expectation that the stock would outperform on the trading day following the results.

Separately, SEI reported fourth-quarter 2025 results that also beat consensus forecasts. The company posted EPS of $1.38, ahead of the $1.36 expected, and reported revenue of $607.93 million versus the anticipated $596.9 million. Despite the outperformance on both earnings and revenue, shares experienced a slight decline in after-hours trading following the announcement.

Investors and market participants will likely monitor whether the sales momentum cited by management translates into the client wins referenced for early 2026 and how the company’s margins trend in coming quarters. For now, Piper Sandler’s revised forecasts and higher price target reflect an improved near-term earnings outlook for SEI driven by the recent quarter and model adjustments.


Analytical note: The revisions incorporate both the company’s reported outperformance and an updated modeling assumption related to Stratos. The price target uses a multiple of the 2026 EPS estimate rather than an explicit discounted cash flow or sum-of-the-parts approach in the commentary provided.

Risks

  • Short-term share price volatility - shares declined slightly in after-hours trading despite the quarterly beat, highlighting potential market sensitivity to timing and guidance.
  • Reliance on continued sales momentum and client wins - management’s optimism about potential high-profile client wins in early 2026 introduces execution risk if those wins do not materialize.
  • Model sensitivity to acquisitions or integrations - Piper Sandler’s updated estimates reflect inclusion of Stratos in its model, which adds uncertainty around the realized benefits and integration outcomes.

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