Raymond James on Tuesday cut its price target for Broadridge Financial (BR) to $257.00 from $276.00, while keeping an Outperform rating on the financial services and fintech provider. The firm’s move follows Broadridge’s fiscal second-quarter 2026 results, which Raymond James called "a strong quarter."
The stock is trading at $185.83, well below both the prior and revised targets. That level reflects a decline from the $197.11 close recorded immediately before the analyst action.
Quarterly results and fundamentals
Raymond James highlighted that the secular tailwinds supporting Broadridge’s long-term revenue and earnings per share growth remain "very much intact," and cited the company’s recent fundamentals, including 8.57% revenue growth over the last twelve months. Broadridge’s second-quarter fiscal 2026 performance beat analyst expectations and the company subsequently raised its full-year earnings guidance.
Despite the lower price target, Raymond James modestly increased its forward earnings per share estimates after reviewing the quarterly report. The firm framed the target reduction as the result of applying "a more conservative target multiple" in light of current market concerns.
Valuation and market signals
Data show Broadridge trading at a PEG ratio of 0.71, a metric suggesting the shares may be undervalued relative to their growth outlook. Raymond James said the stock’s current risk/reward profile is "highly attractive," noting that the shares change hands at under 20 times the firm’s fiscal year 2027 earnings per share estimate.
Independent analysis referenced by the firm indicates the shares are trading near a 52-week low and are in oversold territory, which contributed to its assessment of an attractive entry point despite the compressed valuation multiple.
Risks flagged by the analyst
Raymond James addressed several market concerns directly. The firm described fears that tokenization could disrupt Broadridge’s business model as "substantially overdone." It also acknowledged market commentary around risks from artificial intelligence, but did not quantify those risks beyond noting they are a focus for investors.
On financial stability, Raymond James pointed to an Altman Z-Score of 7.36 for Broadridge, which the firm interprets as indicating very low bankruptcy risk.
Context for investors
The analyst’s change in target reflects a blend of stronger near-term company performance and heightened caution in market-wide valuation multiples. Raymond James’ modest upward revision to forward EPS sits alongside a reduced target multiple, producing the net effect of a lower price objective even as underlying earnings expectations improved.
For market participants tracking Broadridge, the combination of an earnings beat, an upward revision to guidance, and signals of attractive valuation creates a complex picture: company-level execution appears robust, yet macro and market sentiment factors led the analyst to temper the multiple applied to those fundamentals.
Investors evaluating staffing, operations, or capital allocation in the financial technology sector should note these mixed signals: positive operational momentum from Broadridge is being weighed against broader market caution that is compressing valuation multiples.
Bottom line
Raymond James’ decision to lower the price target to $257 while retaining an Outperform rating underscores the firm’s view that Broadridge’s growth drivers and balance-sheet health remain strong, even as it adopts a more conservative stance on valuation amid current market concerns. The shares’ sub-20x fiscal 2027 EPS valuation, low PEG, and proximity to 52-week lows inform the analyst’s characterization of the present risk/reward as "highly attractive."