Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Stephens raised its price target on i3 Verticals (NASDAQ:IIIV) stock to $40.00 from $35.00 on Monday, maintaining an Overweight rating following the company’s better-than-expected third-quarter results. The stock has shown impressive momentum, gaining over 11% in the past week and currently trading near its 52-week high of $32.33. According to InvestingPro, the company’s Fair Value assessment suggests the stock is fairly priced at current levels.
The financial services company reported 8% organic growth and 12.4% total revenue growth in the quarter, along with 120 basis points of adjusted EBITDA margin expansion and $26 million in share buybacks. InvestingPro data reveals impressive gross profit margins of 90.72% and strong revenue growth of 25.08% over the last twelve months.
Stephens highlighted notable positives including annual recurring revenue growth of 12% (compared to 9% in Q2) and 24% growth in software-as-a-service (SaaS) revenue, though part of the earnings beat was attributed to license revenue.
The company reiterated its fiscal year guidance and margin expansion target of 50-100 basis points, despite expectations for lower margin expansion and growth in Q4 due to tough comparisons and planned investments.
Stephens maintained its Overweight rating, noting i3 Verticals has "ample capital flexibility" to pursue acquisitions and organic investment in its product set, particularly JusticeTech, positioning the company for market share gains and revenue acceleration.
In other recent news, i3 Verticals reported its financial results for the third quarter of fiscal year 2025, exceeding analyst expectations. The company achieved an adjusted diluted earnings per share of $0.23, surpassing the forecasted $0.21, which is a 9.52% surprise. Revenue for the quarter reached $51.9 million, beating the expected $49.89 million by 4.03%. Additionally, organic growth was reported at 8% for the fiscal third quarter, with annual recurring revenue accelerating by 300 basis points to 12%. Following these strong results, Raymond (NSE:RYMD) James raised its price target on i3 Verticals to $39.00 from $33.00, while maintaining a Strong Buy rating. These developments highlight the company’s positive performance and growth trajectory.
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