James Faucette, an analyst from Morgan Stanley, maintained the Hold rating on Jack Henry & Associates. The associated price target remains the same with $175.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
James Faucette has given his Hold rating due to a combination of factors surrounding Jack Henry & Associates. One key consideration is the potential impact of losing Pinnacle Financial Partners as a customer, which is currently a significant user of Jack Henry’s on-premise core services. Despite this potential loss, the revenue impact may be less severe than anticipated because no single customer contributes more than 1% of Jack Henry’s total revenue.
Furthermore, while the company might face challenges due to the migration of Pinnacle to a competitor’s platform, there remains an opportunity for Jack Henry to secure non-core business with the pro-forma entity. This could potentially offset any revenue loss from Pinnacle’s departure. Additionally, the current revenue growth expectations for FY27 are slightly below the company’s medium-term targets, suggesting that the potential loss of Pinnacle has already been factored into these projections. Overall, these elements contribute to the Hold rating, reflecting a balanced view of potential risks and opportunities.