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Investing.com - KeyBanc has lowered its price target on i3 Verticals (NASDAQ:IIIV) stock to $32.00 from $35.00 while maintaining an Overweight rating on the shares. According to InvestingPro data, the stock is currently trading at $25.91, with analysts maintaining a Strong Buy consensus and price targets ranging from $28 to $40.
The adjustment follows i3 Verticals ’ fourth-quarter fiscal results, which exceeded Street expectations, primarily driven by strong performance in the company’s software and related services revenue segments. InvestingPro data shows the company maintains impressive gross profit margins of 68.76%, reflecting its operational efficiency.
Despite the quarterly outperformance, KeyBanc cited disappointing fiscal year 2026 guidance as the reason for the price target reduction, noting that the company’s revenue and adjusted EBITDA outlook fell below market expectations.
According to KeyBanc, i3 Verticals anticipates a decline in non-recurring professional services revenue and plans continued investment in product innovation, specifically mentioning JusticeTech and Utility offerings.
The research firm has consequently lowered its FY26 revenue and adjusted EBITDA estimates to reflect these growth headwinds and the company’s planned incremental investments.
In other recent news, i3 Verticals reported its fiscal fourth-quarter earnings, delivering results that exceeded Wall Street’s expectations. The company posted an earnings per share of $0.27, surpassing the forecast of $0.24, and reported revenue of $54.9 million, which was higher than the anticipated $53.67 million. Despite these strong results, the company’s fiscal 2026 guidance midpoints were below consensus estimates, leading to some investor disappointment. This guidance miss was noted by Morgan Stanley, which subsequently lowered its price target for i3 Verticals to $28, while maintaining an Equalweight rating.
On the other hand, DA Davidson maintained its Buy rating with a $39 price target, citing slightly better-than-expected quarterly revenue, though adjusted EBITDA was 5% below their expectations but still 4% above consensus estimates. Benchmark also reiterated its Buy rating despite the guidance miss, acknowledging the company’s ability to beat fourth-quarter expectations. These developments highlight a mixed sentiment among analysts regarding i3 Verticals’ future performance.
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