Analyst Note| Rajiv Bhatia, CFA |
Broadridge reported a strong fiscal third quarter, beating estimates and raising its outlook. Broadridge reported revenue of $1.39 billion, about 8% above the FactSet consensus of $1.28 billion and adjusted EPS of $1.76 topped the consensus of $1.67. Broadridge’s regulatory business continues to be on fire as the retail trading boom has led to increased position growth. Overall, we will maintain our narrow moat rating but plan to increase our fair value estimate to $142 from $128 to account for higher position growth and the acquisition of Itiviti partially offset by a lower long-term tax rate.