William Blair analyst Jeff Schmitt has maintained their neutral stance on SEIC stock, giving a Hold rating on October 13.
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Jeff Schmitt has given his Hold rating due to a combination of factors influencing SEI Investments Company’s current and future performance. The company’s third-quarter results showed strong performance in its Investment Management Services (IMS) segment, particularly in alternatives, and a continued transformation in Private Banks. However, the growth in spread income, which has been a significant earnings driver, is expected to slow as the Federal Reserve eases its policies, creating a potential headwind.
Despite the robust sales pipeline and expanding margins, the anticipated slowdown in earnings growth from 2024 to 2026, coupled with the stock trading near its historical average, suggests that SEI may perform in line with the market in the near term. The dependency on the expansion of Private Banks, where growth has been weaker than anticipated, further supports the Hold rating, as it indicates a cautious outlook on the company’s ability to sustain its current growth trajectory.
In another report released on October 13, KBW also maintained a Hold rating on the stock with a $93.00 price target.