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Investing.com - DA Davidson has reiterated its Hold rating on Jack Henry (NASDAQ:JKHY) with a price target of $204.00, according to a research note released Thursday. The stock currently trades at $163.08, near its 52-week low of $157.80, with a P/E ratio of 27.72x. According to InvestingPro analysis, the stock appears overvalued at current levels.
The financial technology company reported fiscal fourth-quarter results that modestly exceeded DA Davidson’s forecasts on both GAAP and non-GAAP bases. The company demonstrated solid performance with revenue growth of 7.21% over the last twelve months. InvestingPro subscribers can access detailed financial health metrics and 8 additional key insights about JKHY.
Jack Henry management introduced initial guidance for fiscal 2026, projecting 6%-7% year-over-year growth in non-GAAP revenue and 7%-9% year-over-year growth in non-GAAP operating income. These projections exclude deconversion fees from both periods and the restructuring of a reseller agreement.
Following the fourth-quarter update, DA Davidson made minor adjustments to its forecasts, though the changes on an annual basis were described as modest.
The research note contains conflicting information about the firm’s rating, stating both a maintained "BUY" rating and a reiterated Hold rating, while also indicating a price target reduction to $204 from $212.
In other recent news, Jack Henry & Associates Inc. reported its fourth-quarter 2025 earnings, exceeding analyst expectations. The company achieved an earnings per share of $1.75, surpassing the forecasted $1.55, and reported revenue of $615.37 million, which was higher than the anticipated $601.33 million. Despite these strong results, RBC Capital lowered its price target for Jack Henry from $203 to $185, maintaining a Sector Perform rating. Similarly, Keefe, Bruyette & Woods reduced its price target to $178 from $183, citing short-term revenue pressures, though they maintained an Outperform rating. Raymond (NSE:RYMD) James reiterated a Market Perform rating, noting that Jack Henry’s fiscal year 2026 revenue guidance was slightly below consensus expectations. The guidance projected revenue between $2,459 million and $2,488 million, approximately 1% below estimates, with expected growth of 5.6% at the midpoint. When accounting for a $16 million impact from restructuring a third-party agreement, growth could range between 5.8% and 7.0%. These developments reflect the current financial outlook and market reactions surrounding Jack Henry.
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