Investment Research report

Broadridge Financial Solutions, Inc.

NYSE:
BR
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Broadridge Financial Solutions, Inc.
A Narrow Path for Broadridge
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Research Overview

INDEX:
S&P 500
Sector:
Financial Services
Position:
Short
Date:
Sep 28, 2022

After conducting a forensic financial and accounting review, Spruce Point believes Broadridge Financial Solutions, Inc. (NYSE: BR), largely a low value-added business process outsourcer (BPO), is experiencing growing pressures and has wasted over $1.0 billion in a struggling technology partnership with UBS Wealth Management Americas. Based on our investigation, we estimate 65% to 75% downside risk, or $37.35 -$52.30 per share.

The report highlights several key concerns with the company, including:

  • Evidence shows that Broadridge is not a fintech leader and lacks SaaS-like qualities
  • Multiple signs and evidence of rising financial stress
  • We find aggressive cost capitalization despite evidence of a struggling UBS partnership
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