Broadridge Financial Solutions' (BR) focus on the sustainability of its growth algorithm has increased conviction in the 6% to 8% recurring revenue growth outlook for fiscal 2027, RBC Capital Markets analysts said in a Wednesday note.

RBC said the company's double-digit adjusted earnings growth for several years, high recurring revenue, and strong retention rate provide investors with a high degree of visibility.

New AI-native revenue products are gaining traction, such as the Custom Policy Engine used by asset managers representing over $800 billion in assets under management, analysts said.

RBC said the company's free cash flow conversion has returned to its historical rate of about 100%, which provides higher flexibility and maintains the company's total return story.

Analysts retained an outperform rating and a $226 price target on the stock.

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