2022-10-02

Broadridge Financial Solutions [[$BR]]:

Spruce Point Capital published on Broadridge Financial Solutions (NYSE: BR — $22.3 billion), a corporate services and financial technology company. Spruce Point called the company “a low value-added business process outsourcer with rising financial stress and dubious technology prowess.” Spruce Point highlighted website and disclosure changes that appear to indicate diminishing market dominance and identified high executive turnover in the company’s sales, marketing, business development, and finance functions. In addition, Spruce Point questioned the efficacy of the company’s $1.0 billion technology partnership with UBS Wealth Management and claimed the company did an expensive acquisition to help mask “falling profits and declining organic cash flow.” Spruce Point concluded,

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