- RBC Capital Markets analyst Daniel R. Perlin initiates Broadridge Financial Solutions Inc (NYSE:BR) coverage at Outperform at a price target of $169.
- Perlin believes BR’s Investor Communications segment to offer a competitive advantage, as it derives around 47% of recurring revenue from regulatory communications.
- The analyst is bullish on the company, given its strong track record of consistently delivering recurring (CC) revenue growth in mid-to-high single-digits, adjusted operating margin expansion of over 50bps and double-digit growth in adj. EPS, since FY14.
- Given the diminishing impact of the heavy build of the UBS platform on BR, the analyst expects FCF conversion to improve to around 70% in FY23 and over 85% in FY24.
- Consequently, Perlin expects BR’s above-market shareholder returns, with a dividend CAGR of around 13% from FY15-FY22, to continue.
- The analyst expects total revenues of $6.08 billion, adjusted EBITDA of $1.25 billion and adjusted EPS of $6.89 in 2023.
- He projects revenues of $6.45 billion, adjusted EBITDA of $1.35 billion and adj. EPS of $7.58 in 2024.
- For 2025, Perlin anticipates revenue of $6.84 billion, adjusted EBITDA of $1.46 billion and adj. EPS of $8.37.
- Price Action: BR shares are trading higher by 0.39% at $144.26 on last check Monday.
Chinese Hotel Management Firm H World Says Near-Term Revenue Per Available Room Performance Might See Some Fluctuations – Here’s Why
H World Group reported Q1 FY24 sales growth of 17.8% YoY to RMB5.3 billion ($731 million), surpassing the $711.50 million consensus estimate. The Legacy-Huazhu segment saw an 18.1% increase to RMB4.2 billion, while Legacy-DH grew 16.6% to RMB1 billion. Occupancy rates improved across both segments, with a blended RevPAR increase for Legacy-Huazhu and Legacy-DH hotels.
