DA Davidson Upgrades Jack Henry (JKHY) to Buy; Premier Processor With Strong Franchise And Improving Visibility
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Price: $166.48 +0.99%
Rating Summary:
8 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
8 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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DA Davidson upgraded Jack Henry (NASDAQ: JKHY) from Neutral to Buy, price target raised from $32 to $35.
DA analyst says, "As the premier core processor consistently showing the highest organic revenue growth in the direct sector, JKHY shares have held a long standing valuation premium. The recent market correction has essentially eliminated this premium, as JKHY, Fiserv (Nasdaq: FISV)(BUY), and FIS (NYSE: FIS)(BUY) all trade at an EV/EBITDA multiple of ~7x, as shown in the comp table attached to this report. We consider this discount to be unwarranted and view the investment opportunity as significant."
"Given JKHY has entered its fiscal 2012 year, we are initiating what we consider to be conservative fiscal 2013 estimates. Our revenue forecast is $1.1 billion (up 5.8%) and our EPS estimate is $1.90 (up 12%)."
For more ratings news on Jack Henry click here and for the rating history of Jack Henry click here.
Shares of Jack Henry closed at $24.78 yesterday.
DA analyst says, "As the premier core processor consistently showing the highest organic revenue growth in the direct sector, JKHY shares have held a long standing valuation premium. The recent market correction has essentially eliminated this premium, as JKHY, Fiserv (Nasdaq: FISV)(BUY), and FIS (NYSE: FIS)(BUY) all trade at an EV/EBITDA multiple of ~7x, as shown in the comp table attached to this report. We consider this discount to be unwarranted and view the investment opportunity as significant."
"Given JKHY has entered its fiscal 2012 year, we are initiating what we consider to be conservative fiscal 2013 estimates. Our revenue forecast is $1.1 billion (up 5.8%) and our EPS estimate is $1.90 (up 12%)."
For more ratings news on Jack Henry click here and for the rating history of Jack Henry click here.
Shares of Jack Henry closed at $24.78 yesterday.
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