Jack Henry stock rating reiterated at Buy by DA Davidson

Investing.com - DA Davidson has reiterated its Buy rating on Jack Henry (NASDAQ:JKHY) with a price target of $212.00 following the company’s fiscal fourth-quarter 2025 results. The fintech company, currently trading at $160.63 and valued at $11.7 billion, is trading near its 52-week low of $157.80. According to InvestingPro analysis, the stock appears undervalued at current levels.

The financial technology provider reported quarterly results that modestly exceeded DA Davidson’s forecasts on both GAAP and non-GAAP bases, according to the research firm.

Jack Henry has introduced initial guidance for fiscal 2026, projecting 4%-5% growth in GAAP revenue, a 4%-6% year-over-year increase in GAAP operating income, and 1%-3% growth in GAAP earnings per share to a range of $6.32-$6.44.

The company’s fiscal 2026 growth rates reflect an anticipated drag from $16 million in high-margin de-conversion revenue, compared to $34 million in fiscal 2025, as well as a change in a customer agreement.

Jack Henry plans to hold a conference call on Thursday at 8:45 a.m. ET to discuss the results, with DA Davidson expecting to update its forecasts later this week.

In other recent news, Jack Henry & Associates, Inc. reported fourth-quarter earnings that surpassed analyst expectations. The company achieved adjusted earnings per share of $1.75, significantly higher than the analyst consensus of $1.55. Revenue for the quarter rose by 9.9% year-over-year to $615.37 million, exceeding the expected $601.33 million. On a non-GAAP basis, adjusted revenue saw a 7.5% increase, reaching $594.88 million. These results were driven by strong growth across all business segments. The company’s performance has been positively received, with shares rising following the announcement. Investors are likely to note these developments as they consider their positions.

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