DA Davidson reiterates buy rating on ACI Worldwide stock

Published 23/06/2025, 16:06
DA Davidson reiterates buy rating on ACI Worldwide stock

Investing.com - DA Davidson reiterated its buy rating and $60.00 price target on ACI Worldwide (NASDAQ:ACIW) stock on Monday. The payment systems company, currently valued at $4.67 billion, appears undervalued according to InvestingPro analysis.

The research firm maintained its positive outlook following ACI’s announcement earlier today that it has redeemed its $400 million in Senior Notes, which carried a 5.75% interest rate and were set to mature in August 2026.

DA Davidson noted that the redemption of these notes would likely result in lower net interest expense, potentially providing a modest benefit to the firm’s earnings forecasts for 2026 and 2027.

Earlier this month, ACI announced the appointment of Robert (Bobby) Leibrock as Chief Financial Officer, effective July 1, 2025. Leibrock will succeed Scott Behrens, who has served as the company’s CFO for the past 18 years.

The $60 price target from DA Davidson remains unchanged following these recent corporate developments at the payment systems company.

In other recent news, ACI Worldwide reported strong financial results for the first quarter of 2025, with earnings per share (EPS) of $0.51, surpassing the forecast of -$0.03. The company’s revenue reached $395 million, exceeding the anticipated $336.7 million, marking a 25% increase year-over-year. Despite these positive results, the company’s stock experienced a decline. ACI Worldwide also announced the appointment of Robert Leibrock as its new Chief Financial Officer, effective July 1, 2025, as the current CFO, Scott Behrens, prepares for retirement. The company reaffirmed its full-year 2025 financial guidance, projecting a 7% to 9% growth over the previous year on an FX-adjusted basis.

At its 2025 Annual Meeting of Stockholders, ACI Worldwide shareholders re-elected eight board members and ratified the appointment of Deloitte & Touche LLP as the company’s independent registered public accounting firm. Additionally, DA Davidson upgraded ACI Worldwide’s stock rating from Neutral to Buy, maintaining a price target of $60.00, citing a favorable risk/reward scenario. Lastly, the company has launched Kinetic, a new cloud-native payments hub, as part of its strategic initiatives to enhance its market positioning and innovation in the payments industry.

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