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    Deluxe (DLX) Is Up 6.5% After Earnings Beat, Credit Upgrade And Insider Buying - Has The Bull Case Changed?

    Simply Wall St·12/17/2025 01:19:01
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    • In the past few days, Deluxe reported third-quarter 2025 earnings that surpassed analyst expectations, S&P Global Ratings raised its credit rating to ‘B+’ with a stable outlook, and CFO William C. Zint purchased 175 shares under a 10b5-1 plan.
    • Together, stronger-than-expected earnings, a credit upgrade reflecting improved credit metrics, and insider buying highlight growing confidence in Deluxe’s financial trajectory and balance-sheet resilience.
    • We’ll now examine how the earnings beat and credit rating upgrade may influence Deluxe’s existing investment narrative and risk profile.

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    Deluxe Investment Narrative Recap

    To own Deluxe, you need to believe its transition from declining print and checks to Payments and Data Solutions can steadily support earnings and its sizeable dividend. The strongest near term catalyst remains execution on this mix shift and ongoing cash generation, while the main risk is that print erosion outpaces growth elsewhere. The latest earnings beat and credit upgrade support the near term story but do not eliminate that structural print risk.

    The S&P Global Ratings upgrade to B+ with a stable outlook is especially relevant here, because it directly reflects improved credit metrics at a time when Deluxe is funding its shift toward higher margin, tech enabled services. A stronger perceived balance sheet may give the company more room to invest in Payments and Data Solutions, which are central to offsetting print declines and stabilizing long term earnings and cash flows.

    Yet, while confidence in Deluxe’s balance sheet is improving, investors should still be aware of the structural headwind from its shrinking print and check business...

    Read the full narrative on Deluxe (it's free!)

    Deluxe's narrative projects $2.2 billion revenue and $143.9 million earnings by 2028. This involves revenues declining by 0.9% per year and an earnings increase of about $86 million from $57.9 million today.

    Uncover how Deluxe's forecasts yield a $28.67 fair value, a 26% upside to its current price.

    Exploring Other Perspectives

    DLX 1-Year Stock Price Chart
    DLX 1-Year Stock Price Chart

    Three fair value estimates from the Simply Wall St Community span a wide range, from about US$10 to roughly US$78 per share, underscoring how differently investors can view the same numbers. Against that backdrop, the recent earnings beat and credit rating upgrade highlight how perceptions of Deluxe’s ability to offset long term print decline can materially shape expectations for its future performance, so it is worth comparing several viewpoints before making up your mind.

    Explore 3 other fair value estimates on Deluxe - why the stock might be worth over 3x more than the current price!

    Build Your Own Deluxe Narrative

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    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.