UBS initiated coverage on SEI Investments (NASDAQ: SEIC) with a Buy rating and set a price target of $115.00. At the time of the initiation the shares were trading at $84.13, which positions UBS's target roughly 37% above the prevailing market price.
According to InvestingPro data cited in the announcement, SEI appears slightly undervalued when measured against its Fair Value assessment. The investment bank framed the company as a strategic play on growth in the alternative asset management sector, an industry the bank said is enjoying persistent secular tailwinds.
UBS highlighted several internal catalysts that underpin its constructive view. The firm pointed to changes in SEI's management team that it says have strengthened the firm's go-to-market approach, supported margin expansion, and improved capital allocation decisions. Those operational improvements feed into UBS's financial outlook for the company.
On the earnings front, UBS projects 14% medium-term earnings per share growth for SEI, a pace that the bank believes exceeds the approximately 10% EPS growth already priced into the shares. UBS emphasized that, despite the progress the company has made to date, there remains upside potential from where SEI currently sits.
SEI's recent reported results for the fourth quarter of 2025 provide fresh context to UBS's initiation. The company posted EPS of $1.38, above the $1.36 figure analysts had forecast. Revenue for the quarter came in at $607.93 million, surpassing the expected $596.9 million. Those outcomes were followed by a positive market reaction.
The announcement noted variability among analysts' projections, describing the differing estimates as evidence of some unpredictability in SEI's recent financial outcomes. For investors, the combination of an earnings beat, revenue outperformance, and UBS's Buy initiation underscores the current assessment of SEI's financial health.
Context and implications
UBS's initiation links SEI's prospects to broader momentum in alternative asset management and to specific company-level improvements under new leadership. The bank's view rests on operational execution producing margin gains and more efficient capital deployment, which in turn support its earnings trajectory assumptions.
Investors evaluating SEI will weigh UBS's 14% medium-term EPS projection against the roughly 10% growth UBS believes the market already prices in, as well as the recent quarter's stronger-than-expected results.