Donnelley Financial Solutions initiated with a Buy at Needham

Needham initiated coverage of Donnelley Financial Solutions with a Buy rating and $55 price target, implying 25% upside. Donnelley is a leading provider of regulatory and compliance solutions, serving two core customer bases, capital markets clients and investment companies, the analyst tells investors in a research note. With a “strong” competitive position, scaling software business, and capital markets activity that is likely is approaching a bottom, the shares offer a favorable opportunity for “GARP investors,” says the firm.