SS&C Technologies Holdings recently announced a long-term partnership agreement with REI Super to provide superannuation administration services in Australia, highlighting its commitment to expanding within this key growth market. Despite this positive development, the company's stock remained flat last week, alongside broader market gains. While SS&C's Australian expansion and technological investments bolster its market presence, its stock performance aligned with the overall market trajectory, which reflected favorable market sentiments amid earnings results from major technology companies. Consequently, SS&C's consistent market strategy supported stability during this period of broader market growth.

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The recent partnership with REI Super in Australia underscores SS&C Technologies Holdings' commitment to expanding its superannuation services, which aligns with its international growth strategy highlighted by expansions into Australia and the Middle East. This could lead to increased revenue as new client acquisitions bolster their market presence. However, despite these advancements, the stock has remained stable, aligning with broader market trends driven by recent earnings results from major technology companies. Over the past five years, SS&C's total shareholder return, including dividends, was 42.64%, providing a longer-term perspective on its investment potential compared to immediate market sentiment.

Over the past year, SS&C's stock performance surpassed the US Market return of 9.9% as well as the 8.7% return of the US Professional Services industry. Despite geopolitical uncertainties and foreign exchange risks, the company's integration of AI-driven automation and collaborations, such as with Insignia Financial, are expected to enhance efficiency and support future earnings, which is projected to rise from US$815.9 million to potentially US$1.2 billion by April 2028. However, differing analyst opinions suggest potential earnings as low as US$961.8 million.

The current share price of US$74.91 falls below the consensus analyst price target of US$92.99, representing a sizable upside potential of approximately 19.4%. To justify this target, analysts anticipate that by 2028, SS&C will trade at a Price-to-Earnings ratio of 23.3x, higher than the current industry average of 20.7x. Investors should consider both growth prospects and risks, such as the US$6.4 billion in net debt, which could affect financial stability amid rising interest rates.

Get an in-depth perspective on SS&C Technologies Holdings' performance by reading our balance sheet health report here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:SSNC.

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