Kyle Peterson, an analyst from Needham, reiterated the Buy rating on Donnelley Financial Solutions. The associated price target was lowered to $57.00.
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Kyle Peterson has given his Buy rating due to a combination of factors including Donnelley Financial Solutions’ strong third-quarter performance, which exceeded market expectations in both revenue and earnings. This positive outcome was primarily driven by robust activity in capital markets, enhancing the company’s tech-enabled services and Active Disclosure revenue streams. Additionally, a significant one-time tax benefit from the termination of a pension plan contributed to the earnings beat, which is expected to simplify and strengthen the company’s financial position.
Despite a conservative fourth-quarter outlook influenced by the government shutdown’s impact on capital markets, the current valuation of DFIN shares presents an attractive opportunity for small-cap value investors. Trading at a forward P/E multiple of approximately 10 times for fiscal year 2026, the stock offers a compelling risk-reward profile. Consequently, while the price target has been adjusted to $57, the Buy rating is maintained.
Peterson covers the Technology sector, focusing on stocks such as Alight, Donnelley Financial Solutions, and Fair Isaac. According to TipRanks, Peterson has an average return of 2.5% and a 42.18% success rate on recommended stocks.