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Investing.com - Morgan Stanley has reduced its price target on i3 Verticals (NASDAQ:IIIV) stock to $28.00 from $30.00, while maintaining an Equalweight rating on the payment solutions provider.
The price target adjustment comes after investors expressed disappointment with the company’s fiscal year 2026 outlook, which fell short of expectations. Morgan Stanley noted that the miss was largely timing-related rather than indicative of fundamental problems.
The firm explained that recent divestitures and one-time items created noise that made understanding the company’s growth algorithm difficult for investors. Despite the reduced target, Morgan Stanley indicated that the underlying drivers of i3 Verticals ’ business remain "relatively healthy."
Morgan Stanley expects merger and acquisition execution to support growth for the payment technology company moving forward. This suggests the firm believes i3 Verticals’ strategy of growing through acquisitions remains viable.
The firm maintained its Equalweight rating on i3 Verticals stock, suggesting a neutral stance on the company’s near-term performance prospects despite the reduced price target.
In other recent news, i3 Verticals reported its fiscal fourth-quarter earnings, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $0.27, beating the forecast of $0.24, and reported revenue of $54.9 million, which exceeded the expected $53.67 million. This revenue figure also represented a 7% year-over-year increase, surpassing the Street estimate of $53.6 million. Despite these positive results, i3 Verticals provided fiscal 2026 guidance midpoints that fell below consensus estimates.
DA Davidson reiterated its Buy rating on i3 Verticals, maintaining a price target of $39. The firm noted that while adjusted EBITDA came in 5% below its expectations, it was still 4% above consensus estimates. Benchmark also maintained a Buy rating on the stock, even though the guidance miss led to a decline in the company’s stock value. These developments reflect the mixed reactions from analysts and investors following the earnings report.
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