SS&C Technologies (SSNC), which provides software to financial services and healthcare industries, has signed multiple banks to its advanced risk management solution.
Banks are required to update their risk management frameworks to meet Fundamental Review of the Trading Book (FRTB) standards set out by the Basel Committee on Banking Supervision. The deadline to do so is January 2023. SS&C created a FRTB solution to help banks prepare for the new risk management requirements.
“Banks recognize the need to prepare for FRTB now to accommodate the fast-changing local requirements in risk management,” said Mina Wallace, SS&C Algorithmics general manager.
SS&C says its FRTB solution offers FRTB-specific workflows, high performance and scalability, and extensive model coverage.
Among the latest clients to adopt the solution is Denmark’s SDC, which provides IT services to 120 banks in Nordic countries. The other is Slovenia’s largest bank Nova Ljubljanska banka.
In addition to driving the adoption of its FRTB compliance solution, SS&C is also expanding its offerings in the data storage compliance space. In the latest move, it has launched a Tokyo-area storage node to serve Japanese banks for operations like investor reporting and syndicated loans.
Headquartered in Connecticut, SS&C Technologies has been in business since 1986. Some 18,000 financial services and healthcare enterprises use its products. (See SS&C Technologies stock analysis on TipRanks)
On April 27, DA Davidson analyst Peter Heckmann reiterated a Buy rating and raised the price target to $84 from $80 on SS&C stock. The analyst’s new price target implies 14.96% upside potential.
Heckmann was pleased with the company’s strong first-quarter results, particularly, its solid organic revenue growth.
“Q1 results topped expectations while the management raised its guidance,” noted Heckmann.
Consensus among analysts is a Strong Buy based on 7 Buys and 1 Hold. The average analyst price target of $83.29 implies 14% upside potential to current levels.
SSNC scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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