Buy Rating Affirmed for Jack Henry & Associates Amid Strong Core Performance and Optimistic Growth Outlook

In a report released yesterday, Jason Kupferberg from Bank of America Securities reiterated a Buy rating on Jack Henry & Associates (JKHY – Research Report), with a price target of $205.00.

Jason Kupferberg has given his Buy rating due to a combination of factors influencing Jack Henry & Associates. Despite a mixed performance in the third quarter, where adjusted revenues fell short of expectations, the company demonstrated strength in its core banking and payment technology sectors. Notably, key revenue areas saw a significant year-over-year increase, which now constitute a substantial portion of the total revenue.
Moreover, the company has shown healthy trends in core bookings, with a notable number of competitive takeaways and financial institution wins. This indicates strong market positioning and potential for future growth. Additionally, the management’s outlook for operating margin expansion and revenue growth in the coming fiscal years remains optimistic, further supporting the Buy rating. The raised margin guidance for fiscal 2025, despite lowered revenue expectations, also reflects confidence in the company’s operational efficiency.

According to TipRanks, Kupferberg is an analyst with an average return of -3.2% and a 51.11% success rate. Kupferberg covers the Technology sector, focusing on stocks such as Cognizant, Fidelity National Info, and Block.