Broadridge Financial (BR) Stock Forecast & Price Target

Broadridge Financial Solutions is projected to experience an operating margin expansion of approximately 50 basis points annually from FY24 to FY26, indicating strong profitability momentum going forward. The Investor Communication Solutions (ICS) segment is expected to benefit from significant scale and a competitive advantage, along with growing participation from retail investors and increasing digital communications, which present substantial growth opportunities. Additionally, the Capital Markets segment demonstrated an acceleration in year-over-year revenue growth, reaching 10% in F3Q25, bolstered by higher trading volumes and new contract wins, underscoring overall positive financial performance.

Broadridge Financial Solutions is facing a potentially challenging financial outlook as indicated by its downside scenario, where a projected EPS of $8.19 for CY26 leads to a lower P/E multiple of 24x, reflecting decreased expectations for future performance. The organic revenue growth in Wealth Management declined in F3Q25, attributed to factors such as reduced demand, heightened competition, and increased cost pressures. This combination of slowing revenue growth and rising expenses raises concerns about the company’s ability to maintain its financial momentum in the medium term.