i3 Verticals price target lowered to $35 from $39 at DA Davidson

DA Davidson lowered the firm’s price target on i3 Verticals (IIIV) to $35 from $39 and keeps a Buy rating on the shares after its Q4 results. The company’s management expects two dynamics to weigh on growth and margins in FY26, including plans to increase focus on new recurring revenue contracts, which will likely lead to lower non-recurring professional services revenue in the near term, and the management beginning to ramp their investment spending in their Justice technology solutions late in FY25, the analyst tells investors in a research note.