Tuesday - Oppenheimer has increased the stock price target for SEI Investments (NASDAQ:SEIC) to $81 from $80, while maintaining an Outperform rating on the shares. The adjustment comes as the analyst anticipates a positive shift in the company's third-quarter earnings per share (EPS), moving from an estimate of $1.05 to $1.06, attributed to better than expected performance in equity markets.
The firm's analyst also revised the full-year 2024 and 2025 EPS estimates upwards from $4.16 and $4.52 to $4.17 and $4.56, respectively. This revision is based on higher Assets Under Management (AUM) assumptions. The new price target is set using a multiple of 16.5 times the anticipated earnings.
In the announcement, the analyst noted the potential impact of SEI Investments' upcoming Investor Day, scheduled for November, suggesting it could serve as a significant event for the company. The day is expected to provide investors with deeper insights into the company's operations and future plans.
SEI Investments has been under the analysts' radar, and the slight increase in the price target reflects a cautiously optimistic outlook for the company's financial performance. The revision indicates a belief in the company's ability to capitalize on current market conditions.
Investors and market watchers are advised to look forward to SEI Investments' Investor Day for further details on the company's strategy and performance expectations. The event could play a pivotal role in shaping investor sentiment and the stock's trajectory in the near term.
InvestingPro Insights
SEI Investments' (NASDAQ:SEIC) recent performance and future outlook align well with several key metrics and insights from InvestingPro. The company's P/E ratio of 17.95 is relatively low compared to its near-term earnings growth, as highlighted by an InvestingPro Tip. This supports Oppenheimer's optimistic stance and increased price target.
Another InvestingPro Tip notes that SEI has raised its dividend for 10 consecutive years, demonstrating a strong commitment to shareholder returns. This is further reinforced by the company's dividend yield of 1.32% and a dividend growth rate of 6.98% over the last twelve months.
The company's financial health appears robust, with InvestingPro Data showing a revenue growth of 5.62% and an impressive EBITDA growth of 28.46% over the last twelve months. These figures align with the analyst's upward revision of EPS estimates for 2024 and 2025.
For investors seeking a deeper understanding of SEI Investments' potential, InvestingPro offers 5 additional tips that could provide valuable insights ahead of the company's Investor Day in November.
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