DA Davidson reiterates Buy rating on i3 Verticals stock, maintains $39 price target

Published 15/08/2025, 14:14
DA Davidson reiterates Buy rating on i3 Verticals stock, maintains $39 price target

Investing.com - DA Davidson has reiterated its Buy rating on i3 Verticals (NASDAQ:IIIV) stock, maintaining a $39.00 price target. The target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $30 to $40, with the stock currently trading at $31.94.

The research firm originally added i3 Verticals to its STAMPEDE ideas list under the "Portfolio Restructuring" category in February 2024, following the company’s announcement that it would pursue divestiture of its Merchant Services operations.

Investor response to the divestiture plans and subsequent improvement in the company’s balance sheet has been positive, with i3 Verticals shares appreciating by more than 110% since February 2024, compared to a 28% rise in the S&P 500 during the same period.

Despite maintaining its Buy rating on the stock, DA Davidson has now removed i3 Verticals from its STAMPEDE ideas list.

The firm continues to view the i3 Verticals story favorably while making this adjustment to its recommendation list.

In other recent news, i3 Verticals reported impressive fiscal third-quarter 2025 results that exceeded analyst expectations. The company announced an adjusted diluted earnings per share (EPS) of $0.23, surpassing the forecasted $0.21, and achieved a revenue of $51.9 million, beating the anticipated $49.89 million. This strong performance prompted several financial firms to adjust their outlooks for i3 Verticals. DA Davidson, Benchmark, and Raymond James all raised their price targets to $39, while Stephens set theirs slightly higher at $40, each maintaining favorable ratings on the stock. The company demonstrated notable growth, with 12.4% total revenue growth and a 12.7% year-over-year increase in revenue from continuing operations. Additionally, i3 Verticals experienced an 8% organic growth and expanded its adjusted EBITDA margin by 120 basis points. Notably, the company’s Software-as-a-Service (SaaS) segment saw a 24% year-over-year growth, and annual recurring revenue accelerated by 300 basis points to 12%.

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