DA Davidson Raises Price Target on ACI Worldwide (ACIW), Major Upside Potential in the Near-Term
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Price: $53.44 -0.41%
Rating Summary:
9 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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DA Davidson is reiterating its Buy rating on shares of ACI Worldwide (NASDAQ: ACIW) as it raises its price target from $38 to $42.
The firm reports that as financial institutions appear to opening up their wallets, particularly within the largest global banks, ACIW is nicely positioned for financial technology spending, and should be for several years.
The recent announcement that S1 Corp. (Nasdaq: SONE) plans to merge with Fundtech Ltd. (Nasdaq: FNDT) creates a stronger and larger competitor in which ACIW has to compete with over the long term. DA Davidson notes that the acquisition may highlight to investors the growing market for payments products within the larger institutions.
DA Davidson points out three upcoming catalysts, "First, management is targeting a dozen large banks with a compelling ROI pitch to upgrade and consolidate systems. Signing any one of these banks is not included in guidance and would provide upside to our estimates. Second, there is a maintenance price hike coming in January 2012, which we forecast will boost maintenance revenues by 6%. Lastly, at a high level, customer purse strings are loosening, causing previously stalled projects to be re-initiated."
For more ratings news on ACI Worldwide click here and for the rating history of ACI Worldwide click here.
Shares of ACI Worldwide closed at $35.99 yesterday.
The firm reports that as financial institutions appear to opening up their wallets, particularly within the largest global banks, ACIW is nicely positioned for financial technology spending, and should be for several years.
The recent announcement that S1 Corp. (Nasdaq: SONE) plans to merge with Fundtech Ltd. (Nasdaq: FNDT) creates a stronger and larger competitor in which ACIW has to compete with over the long term. DA Davidson notes that the acquisition may highlight to investors the growing market for payments products within the larger institutions.
DA Davidson points out three upcoming catalysts, "First, management is targeting a dozen large banks with a compelling ROI pitch to upgrade and consolidate systems. Signing any one of these banks is not included in guidance and would provide upside to our estimates. Second, there is a maintenance price hike coming in January 2012, which we forecast will boost maintenance revenues by 6%. Lastly, at a high level, customer purse strings are loosening, causing previously stalled projects to be re-initiated."
For more ratings news on ACI Worldwide click here and for the rating history of ACI Worldwide click here.
Shares of ACI Worldwide closed at $35.99 yesterday.
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D.A. Davidson, S1 Corp./Fundtech Ltd.Sign up for StreetInsider Free!
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