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Financial regulatory and compliance solutions provider Donnelley Financial Solutions (NYSE:DFIN) was updated by DA Davidson on the basis of improving growth prospects.
The investment firm raised its recommendation on DFIN to Buy from Neutral and raised its price target to $72 from $60. The stock was trading +0.90% Premarket Friday at $60.44.
“We believe the company is well positioned to resume generating total revenue growth after two years of decline,” DA Davidson said in a research note.
The decline in revenue over the past two years has been driven by a moderation in capital markets transaction activity. Following a review of business in the quarter, the investment firm raised its revenue forecast to the midpoint of management’s quarterly guidance. First quarter revenue guidance now stands at $216 million (+9% y/y), versus consensus of $212 million.
The full-year revenue outlook is $846 million (+6% y/y) and the adjusted EBITDA outlook is $225 million (8% y/y).
The rating is in line with the average sell-side analyst rating of Buy ($66 price target).
Seeking Alpha’s Quant Rating system classifies the stock as a Hold, with a score of 2.87 on a scale of 5.