
DFIN Stock Forecast & Price Target
DFIN Analyst Ratings
Bulls say
Donnelley Financial Solutions Inc. has demonstrated strong organic growth in its software revenue, achieving an impressive 11.6% year-over-year increase, which now comprises over 40% of total revenue, positioning the company favorably against fluctuations in transaction volumes. The company continues to show resilience with robust performance in its Arc Suite, which experienced a 23% year-over-year growth, indicating a solid demand for its technology-enabled services. Additionally, there is optimism for improved growth dynamics in the second half of 2024 and into 2025, driven by a potential uptick in capital markets activity and the company's strategic shift towards more profitable software solutions away from low-margin print services.
Bears say
Donnelley Financial Solutions Inc. is expected to face a decline in revenue for the first quarter, with projections ranging from $190 to $200 million, falling short of the consensus estimate of $208.2 million, representing a year-over-year drop of 4.1% at the midpoint. Additionally, both adjusted EBITDA and adjusted EPS figures reflected disappointing performance, with adjusted EBITDA of $31.7 million and EPS of $0.40 falling below prior estimates and consensus expectations, largely due to the weak top-line results. The company faces significant challenges as market volatility may hinder a recovery in capital markets activity, compounded by concerns over its ability to transition efficiently, impacting growth and margins, amidst elevated pressures from corporate term loans and ongoing higher interest rates.
This aggregate rating is based on analysts' research of Donnelley Financial Solutions and is not a guaranteed prediction by Public.com or investment advice.
DFIN Analyst Forecast & Price Prediction
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