Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - DA Davidson maintained its Buy rating on Jack Henry (NASDAQ:JKHY) stock with a price target of $212.00, representing the highest among analyst targets ranging from $175 to $212. The stock currently trades at $161.58, near its 52-week low of $157.80.
The financial services firm cited higher-than-expected deconversion revenue as a key factor in its continued positive outlook for the financial technology provider. The company has demonstrated solid fundamentals, with a 5.92% revenue growth over the last twelve months and a healthy gross profit margin of 42%.
According to DA Davidson, Jack Henry management expects to record $20.5 million in deconversion revenue in the current quarter, significantly higher than the firm’s previous forecast of $9.6 million.
Management has also increased its full-year fiscal 2025 guidance for deconversion fees to $33.9 million, up from the prior expectation range of $22.0 million to $28.0 million.
DA Davidson indicated it would adjust its GAAP forecasts to reflect the higher than expected level of deconversion fee revenue in the fourth quarter and fiscal 2025 in an upcoming earnings preview note.
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