Jack Henry stock price target lowered to $185 from $203 at RBC Capital

Published 21/08/2025, 17:16
Jack Henry stock price target lowered to $185 from $203 at RBC Capital

Investing.com - RBC Capital has lowered its price target on Jack Henry (NASDAQ:JKHY) to $185.00 from $203.00 while maintaining a Sector Perform rating on Thursday. The stock currently trades at $163.57, near its 52-week low of $157.80, with analysts’ targets ranging from $173 to $212.

The price target reduction follows Jack Henry’s fiscal fourth quarter 2025 results, which RBC described as strong with consistent core and complementary wins. The company has maintained a strong financial position, with InvestingPro data showing 21 consecutive years of dividend raises and a current yield of 1.42%.

Despite the positive quarterly performance, RBC cited several headwinds affecting the company’s lighter-than-expected fiscal year 2026 guidance, including a restructuring of a third-party contract and industry consolidation.

Additional factors mentioned by RBC include deceleration in the number of accounts in banks and credit unions, as well as price compression in contract renewals.

RBC stated it has incorporated these headwinds into its estimates while also reducing its multiple for Jack Henry stock, resulting in the lower price target.

In other recent news, Jack Henry & Associates Inc. reported its fourth-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share of $1.75, exceeding the forecasted $1.55, and reported revenue of $615.37 million, higher than the anticipated $601.33 million. In terms of future outlook, Raymond (NSE:RYMD) James maintained its Market Perform rating on Jack Henry, noting that the company’s fiscal year 2026 revenue guidance fell short of consensus expectations by approximately 1%. The guidance suggests a reported growth of 5.6% at the midpoint, with adjustments for a restructuring headwind indicating growth between 5.8% and 7.0%.

Meanwhile, Keefe, Bruyette & Woods (KBW) lowered its price target for Jack Henry to $178.00 from $183.00, maintaining an Outperform rating. The reduction in the price target was attributed to anticipated short-term pressures on the company’s revenue. These developments highlight the mixed sentiment among analysts regarding Jack Henry’s financial performance and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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