Analyst Kyle Peterson from Needham reiterated a Buy rating on Donnelley Financial Solutions (DFIN – Research Report) and keeping the price target at $72.00.
Kyle Peterson’s rating is based on Donnelley Financial Solutions’ strategic shift towards enhancing its software offerings, which is seen as a positive move for long-term growth. The company is effectively reducing its reliance on low-margin print services and focusing on building a more sustainable revenue stream through software. This transition is expected to stabilize and potentially increase the company’s earnings, making the capital markets revenue an additional benefit rather than a core component of its earnings profile.
Despite the current uncertainties in capital markets due to volatility, Peterson views the risk-reward scenario as favorable, particularly for small-cap growth at a reasonable price (GARP) investors. The stock’s valuation, trading at a forward price-to-earnings multiple of approximately 10.7x for fiscal year 2026, is considered attractive. Therefore, Peterson maintains a Buy rating with a price target of $72, reflecting confidence in the company’s strategic direction and potential for future growth.
Peterson covers the Technology sector, focusing on stocks such as Alight, Affirm Holdings, and Fair Isaac. According to TipRanks, Peterson has an average return of 2.7% and a 43.53% success rate on recommended stocks.