Automating business processes — especially in complex fields like finance or medicine – is a tall order. It also happens to be the exact problem that SS&C Technologies Holdings Inc. (SSNC) decided to tackle. Despite a 41% surge over the last year, the stock remains significantly undervalued, notes Steve Reitmeister, editor of Zen Investor.
Analysts are unanimously bullish regarding its long-term prospects. Its Zen Rating is “A” (Strong Buy). Its recent price was $88.09. And its maximum 1-year forecast is $105.
Here’s why we’re watching the stock:
1. Wall Street equity researchers are overwhelmingly bullish when it comes to SSNC. Six analysts issue ratings for the stock, with four Strong Buy ratings and 2 Buy ratings.
2. Notably, DA Davidson’s Peter Heckmann (a top 3% rated analyst) reiterated an earlier Strong Buy rating after the company reported its Q4 and FY 2024 earnings on February 6. Heckmann also raised his price forecast for SSNC stock from $92 to $102.
SS&C Technologies Holdings Inc. (SSNC)
3. Heckmann attributed their price target hike to two factors: The quarter's better-than-expected revenue and EBITDA numbers and the fact that, at current levels, the stock is trading at an enterprise value of ~11x the FY 2026 EBITDA forecast, compared to an average multiple of 12x to 12.5x over the last decade.
4. Our proprietary quant rating system gave SS&C Technologies stock a Zen Rating of A. Per a holistic overview provided by the 115 unique factors taken into account, SSNC is in the top 5% of all the stocks we track.
5. Relative to its earnings potential, the stock is quite undervalued — netting a Value Rating of A. On top of that, SSNC also has an A rating when it comes to Sentiment. In both categories, the stock is in the top 5% of equities.
