In a report released today, John Davis from Raymond James upgraded Jack Henry & Associates to a Buy, with a price target of $198.00.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
John Davis has given his Buy rating due to a combination of factors that highlight Jack Henry & Associates’ potential for growth and value. The company is poised to benefit from a significant opportunity in the market, as a major competitor undergoes core consolidation, potentially allowing Jack Henry to gain a substantial number of new clients. This could translate into a notable increase in revenue and earnings per share over the next few years.
Additionally, Jack Henry’s strong free cash flow and solid balance sheet position it well to capitalize on stock buybacks, especially with its current low valuation. The company’s performance in the payments sector, driven by card-related services and robust consumer spending, suggests further upside potential. Furthermore, easing pricing pressures and expected revenue growth acceleration contribute to the favorable outlook, making the stock an attractive investment opportunity.
In another report released on November 6, Compass Point also upgraded the stock to a Buy with a $187.00 price target.
Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of JKHY in relation to earlier this year.