I3 Verticals, the Technology sector company, was revisited by a Wall Street analyst today. Analyst James Faucette from Morgan Stanley maintained a Hold rating on the stock and has a $28.00 price target.
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James Faucette’s rating is based on a combination of factors impacting I3 Verticals. The company’s stock has seen a decline due to a less optimistic fiscal year 2026 outlook, primarily because of delays in revenue recognition for certain projects in utilities and transportation. This has led to a cautious stance among investors as the outlook fell short of consensus expectations in terms of revenue, adjusted EBITDA, and adjusted EPS.
Furthermore, the company’s transition to a pure-play Public Sector software entity has introduced complexities in understanding its growth trajectory. The recent divestitures and one-time issues have added to the uncertainty, making it challenging for investors to gauge future growth. Despite these challenges, the underlying demand remains strong, and the company’s capacity for mergers and acquisitions supports its growth strategy. Therefore, James Faucette has maintained a Hold rating, reflecting a balanced view of the potential risks and opportunities.
Faucette covers the Technology sector, focusing on stocks such as Endava, Fiserv, and Block. According to TipRanks, Faucette has an average return of 4.0% and a 61.82% success rate on recommended stocks.