Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - DA Davidson has reiterated its Buy rating and $60.00 price target on ACI Worldwide (NASDAQ:ACIW), currently trading at $44.41, ahead of the company’s second-quarter earnings report. Analyst targets for the stock range from $48.73 to $77, with InvestingPro analysis indicating the stock is currently undervalued.
The firm expects ACI Worldwide to report its Q2 results on July 31, with performance likely to meet or modestly exceed both the firm’s forecasts and consensus estimates. The company has demonstrated strong fundamentals with a 13.11% revenue growth and a healthy 51.34% gross profit margin in the last twelve months.
DA Davidson anticipates that management will either affirm or slightly adjust their guidance for 2025 when they report Q2 results, and will also provide specific guidance for the third quarter.
The firm noted that its own third-quarter forecasts are more likely to align with management’s upcoming Q3 2025 guidance than the current consensus, which includes what DA Davidson views as two aggressive adjusted EBITDA forecasts.
ACI Worldwide is a global software company that provides real-time payment solutions to corporations, financial institutions, and merchants.
In other recent news, ACI Worldwide reported its Q1 2025 financial results, significantly surpassing market expectations. The company achieved an earnings per share of $0.51, far exceeding the forecast of -$0.03, and generated revenue of $395 million, which was well above the anticipated $336.7 million. Despite this strong performance, the stock experienced a decline in pre-market trading. ACI Worldwide also reaffirmed its 2025 financial outlook, projecting a revenue growth of 7% to 9% over the previous year on an FX-adjusted basis. Additionally, the company announced the appointment of Robert Leibrock as its new Chief Financial Officer, effective July 1, 2025. DA Davidson upgraded ACI Worldwide’s stock rating to Buy, maintaining a price target of $60, citing the company’s strong first-quarter results as a factor. The firm noted that the redemption of $400 million in Senior Notes could lead to reduced net interest expenses, potentially benefiting future earnings. Furthermore, ACI Worldwide held its 2025 Annual Meeting of Stockholders, where key proposals, including the re-election of board members and the ratification of Deloitte & Touche LLP as the independent registered public accounting firm, were passed with strong support.
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