William Blair analyst Christopher Kennedy has reiterated their bullish stance on JKHY stock, giving a Buy rating today.
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Christopher Kennedy has given his Buy rating due to a combination of factors that highlight Jack Henry & Associates’ strong financial position and growth potential. The company is trading at a historically low multiple, which presents an attractive opportunity for investors, especially given its robust balance sheet and ability to generate strong free cash flow. Despite a temporary slowdown in revenue growth, the company’s long-term growth trajectory remains solid, supported by a sticky customer base and strong internal execution.
Additionally, Kennedy views the current sell-off in banktech stocks as an opportunity for long-term investors, with Jack Henry being well-positioned to benefit from this trend. Concerns about the disintermediation of banks are seen as exaggerated, and Jack Henry, along with its peers, is expected to continue being a source of innovation for financial institutions. The challenges faced by competitors like Fiserv are considered isolated, potentially providing a tailwind for Jack Henry’s more innovative and customer-focused approach.