ACI Worldwide upgraded to Buy at DA Davidson after pullback

DA Davidson upgraded ACI Worldwide (ACIW) to Buy from Neutral with an unchanged price target of $60. With the shares pulling back about 20% from late 2024 highs following “strong” Q1 results, the firm views the risk/reward as more attractive, the analyst tells investors. While the overall Q1 update was “constructive,” the shares pulled back about 15% over the last two days, notes the firm, which suspects some investors may have expected a larger upward revision to 2025 guidance given the strong Q1. However, the firm believes the strong results over the last five quarters brought new fundamental and earnings momentum investors into the name who may not have appreciated how significantly quarter to quarter volatility in Software License Fees can impact quarterly results, the analyst added.