DA Davidson Upgrades ACI Worldwide (ACIW) to Buy; Acquisition Distractions Removed...It’s Go Time!
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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 upgraded ACI Worldwide (NASDAQ: ACIW) from Neutral to Buy, price target raised from $35 to $45.
DA analyst says, "While integration and sales risks remain, we are very excited about this acquisition as we believe the combination of ACIW and S1 (Nasdaq: SONE)(NEUTRAL) makes a formidable competitor. Not only does ACIW remove an increasingly competitive thorn in its side, but the company gains a payment product more suited to the middle market, and enhanced cash management functionality. In addition, ACIW will acquire a largely recurring, community bank-focused outsourcing operation. We see plenty of product synergies and customer cross sales."
"We expect the company can produce revenues of over $750 million in 2013, up 61% from 2011, and EBITDA of nearly $200 million, up 85% during the same period. Our increased 2012 estimates, as shown below, assume a roughly $6 million increase in interest expense, a 16% increase in share count, roughly $22 million in cost synergies, but little in the way of revenue synergies."
For an analyst ratings summary and ratings history on ACI Worldwide click here. For more ratings news on ACI Worldwide click here.
Shares of ACI Worldwide closed at $35.41 yesterday.
DA analyst says, "While integration and sales risks remain, we are very excited about this acquisition as we believe the combination of ACIW and S1 (Nasdaq: SONE)(NEUTRAL) makes a formidable competitor. Not only does ACIW remove an increasingly competitive thorn in its side, but the company gains a payment product more suited to the middle market, and enhanced cash management functionality. In addition, ACIW will acquire a largely recurring, community bank-focused outsourcing operation. We see plenty of product synergies and customer cross sales."
"We expect the company can produce revenues of over $750 million in 2013, up 61% from 2011, and EBITDA of nearly $200 million, up 85% during the same period. Our increased 2012 estimates, as shown below, assume a roughly $6 million increase in interest expense, a 16% increase in share count, roughly $22 million in cost synergies, but little in the way of revenue synergies."
For an analyst ratings summary and ratings history on ACI Worldwide click here. For more ratings news on ACI Worldwide click here.
Shares of ACI Worldwide closed at $35.41 yesterday.
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