Andrew Bauch, an analyst from Wells Fargo, reiterated the Sell rating on Jack Henry & Associates (JKHY – Research Report). The associated price target is $155.00.
Andrew Bauch has given his Sell rating due to a combination of factors impacting Jack Henry & Associates. The company’s recent financial results showed a slower growth in revenue than anticipated, despite a better-than-expected performance in earnings per share and operating margins. This discrepancy between revenue growth and profitability raises concerns about the sustainability of the company’s financial performance.
Additionally, the updated guidance for fiscal year 2025 indicates a reduction in expected revenue growth, which is attributed to delays in customer purchases and a potential decline in transaction volumes. While the company has managed to maintain better margins, the overall outlook remains cautious due to these uncertainties. The unexpected increase in deconversion revenues, driven by a rise in bank mergers and acquisitions, adds another layer of unpredictability, leading to skepticism about future revenue acceleration.
JKHY’s price has also changed slightly for the past six months – from $179.970 to $171.650, which is a -4.62% drop .