Stock Analysis

SS&C Technologies (SSNC): Exploring Valuation After Recent Steady Share Climb

Shares of SS&C Technologies Holdings (SSNC) have shown resilience recently, posting a steady climb of 2% over the past month and bringing year-to-date returns up to 12%. Investors are taking note of the company’s consistent performance in the financial software and services sector, even as broader markets remain somewhat turbulent.

See our latest analysis for SS&C Technologies Holdings.

This latest stretch of gains comes after a modest pullback earlier in the year, reflecting a shift in sentiment as investors warm up to the company’s steady fundamentals and recent earnings consistency. With a 1-year total shareholder return of 11.6% and a positive trend so far in 2024, momentum appears to be gathering strength in SS&C’s favor.

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But with SS&C Technologies now trading about 20% below the average analyst price target and showing healthy growth in both revenue and net income, the key question is whether the market is undervaluing future prospects or has already priced in what lies ahead.

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Most Popular Narrative: 17% Undervalued

SS&C Technologies Holdings’ narrative assigns a fair value of $101.22 per share, well above its last close at $83.90. Market watchers are debating what’s built into that optimistic figure.

The integration of AI-driven automation platforms like Blue Prism, designed to enhance operational efficiency, is anticipated to reduce costs and improve net margins over time. The strategic lift-out agreement with Insignia Financial is set to contribute significantly to SS&C's revenue in the latter half of 2025, supporting a stronger revenue forecast.

Read the complete narrative.

Want to know why this narrative sets a bold fair value? The answers hide in margin expansion, global transactions, and futuristic technology bets. The market’s next move could hinge on these key forecasts. Dive in for the specifics driving the price target.

Result: Fair Value of $101.22 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent foreign exchange pressures and rising interest rates could challenge SS&C’s revenue growth. These factors may potentially undermine the upbeat valuation outlook.

Find out about the key risks to this SS&C Technologies Holdings narrative.

Build Your Own SS&C Technologies Holdings Narrative

If you see things differently or want to take a hands-on approach, crafting your own story from the data takes just a few minutes. Do it your way.

A great starting point for your SS&C Technologies Holdings research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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