BR BR Broadridge Financial Solutions Inc Loading... : Bullish and Bearish Analyst Opinions

Author discloses an active 1% position in Broadridge Financial, indicating a current long holding at lower conviction relative to SPGI.

Buy high-moat financial compounders (exchanges, payment networks, data/analytics) into recent weakness; speaker calculates attractive IRRs at current prices and is steadily adding, with CME, CBOE, and ICE specifically flagged for recent selloff-driven entry.

Long a basket of data/payments giants that offer double-digit IRRs, wide moats, and have been unfairly sold off in the AI loser basket, while providing a natural hedge against shorts.

Author nibbled a small position at a middle target but expects lower targets to be tested in Q2 or Q3 while remaining significantly long through ETFs for exposure.

Broadridge Financial undervalued by AI fear

Broadridge has a near-monopoly in mandatory investor communications (80% NA market share), 98% customer retention, and a 20-year dividend growth streak with a 16% CAGR. Current valuation (P/E ~18x) is at a decade low. The market is mispricing BR due to AI-disruption fears, but the author argues its regulatory-embedded, high-switching-cost business model is defensible, creating a gap between price and intrinsic value ($182-$240 vs. current price). BR is a "rare opportunity" to buy a high-quality, defensive compounder at a discount. The panic is overblown, and the business's fundamentals and competitive advantages remain intact. AI technology could enable major clients (banks) to build in-house systems, eroding BR's market share and pricing power. A significant slowdown in long-term growth.

Broadridge is undervalued due to AI fears.

The tweet highlights profitable tech stocks currently showing oversold conditions based on low RSI levels.

McDermott confirms Goldman Sachs is building its "Digital Asset Platform" on the Canton Network. He explicitly mentions Broadridge (BR) as an extensive user for collateral mobility and repo operations. Institutional adoption isn't happening on public Ethereum mainnet due to privacy requirements. It is happening on permissioned networks like Canton. Goldman and Broadridge are the first movers building the actual "plumbing" for institutional blockchain (collateral mobility, repo), positioning them to reduce back-office costs and increase liquidity efficiency. LONG. These are the infrastructure winners in the "Permissioned/Institutional" blockchain thesis. Adoption of permissioned chains stalls in favor of public chains (L2s); regulatory reversal.