Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Benchmark raised its price target on i3 Verticals (NASDAQ:IIIV) stock to $39.00 from $33.00 on Monday, while maintaining a Buy rating following the company’s third-quarter fiscal 2025 results. The stock, currently trading at $31.71, has shown significant momentum with a 41.44% return over the past year. According to InvestingPro data, analysts maintain a strong Buy consensus with price targets ranging from $25 to $40.
The firm’s decision follows i3 Verticals’ strong quarterly performance, which showed revenue from continuing operations increasing 12.7% year-over-year, exceeding Street expectations. The company’s Software-as-a-Service (SaaS) growth was particularly impressive at 24% year-over-year, supported by remarkable gross profit margins of 90.72%. InvestingPro analysis reveals 12 additional key insights about the company’s performance and valuation metrics, available to subscribers.
Benchmark’s new price target is based on a 20x EV/EBITDA multiple applied to its fiscal year 2026 estimated adjusted EBITDA of $64.7 million. The firm has introduced fiscal year 2026 estimates that reflect expectations of continued operating momentum.
The research firm noted that i3 Verticals’ recent quarterly results demonstrated "clean execution, sharpened focus, and enough operating momentum" to support further stock appreciation beyond Friday’s 11.3% gain following the earnings report.
Benchmark highlighted that i3 Verticals’ recent divestitures have successfully repositioned the company as a "pure play Public Sector software company," making the risk/reward profile of its shares "much more favorable."
In other recent news, i3 Verticals reported impressive financial results for the third quarter of fiscal year 2025, exceeding analyst expectations. The company achieved an adjusted diluted earnings per share (EPS) of $0.23, surpassing the forecasted $0.21, and reported revenue of $51.9 million, which was higher than the expected $49.89 million. This strong performance included 8% organic growth and 12.4% total revenue growth, along with a 120 basis point expansion in adjusted EBITDA margin. Additionally, i3 Verticals completed $26 million in share buybacks during the quarter.
Following these results, analyst firms have adjusted their outlook on the company. Stephens raised its price target for i3 Verticals to $40, maintaining an Overweight rating, citing the company’s robust third-quarter performance. Similarly, Raymond (NSE:RYMD) James increased its price target to $39, up from $33, while keeping a Strong Buy rating, noting a 2% revenue upside and a 4% adjusted EBITDA beat compared to Street expectations. The company’s annual recurring revenue (ARR) also saw an acceleration of 300 basis points to 12%. These developments reflect a positive sentiment among analysts regarding i3 Verticals’ financial health and growth prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.