Morgan Stanley analyst James Faucette maintained a Hold rating on Jack Henry & Associates today and set a price target of $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 impacting Jack Henry & Associates. Despite some positive aspects, such as better-than-expected adjusted revenue results and potential free cash flow benefits, there are ongoing concerns about the stability of medium-term revenue growth. The market is wary of the durability of this growth, especially with the perceived loss of a key customer and persistent pricing pressures in the industry.
Additionally, while the company anticipates revenue acceleration in the latter half of fiscal year 2026 and fiscal year 2027, these projections are not enough to alleviate concerns. The potential for significant buyback activity could drive earnings per share outperformance, but the shares are expected to remain within a narrow trading range. These mixed signals contribute to the Hold rating, as the near-term financial benefits are not seen as sufficient to offset the medium-term uncertainties.