Shares of Jack Henry & Associates ( NASDAQ: JKHY ) on Wednesday made modest gains in morning trade after William Blair initiated the financial technology services provider with an outperform rating.
JKHY was up 1.4% to $180.79. The stock has started off 2023 on a positive note, having gained 1.6% so far for the new year.
"We believe that the traditional fundamental drivers of the business remain largely intact; revenues have grown at a compound annual rate of 7% and adjusted EPS at about 12% since fiscal 2011," William Blair analyst Cristopher Kennedy said in a research note.
Monett, Mo.-based Jack Henry ( JKHY ) provides various services such as digital banking, payment processing, cybersecurity and lending solutions.
"Fiscal 2023 EPS are pressured by the acquisition of Payrailz and lower deconversion fees, but we estimate EPS of $4.93 and 11% growth to $5.47 in fiscal 2024," Kennedy said, referring to the company's acquisition of digital payment solutions provider Payrailz.
The consensus EPS estimate for fiscal 2023 is $4.94 while that for fiscal 2024 is $5.52.
William Blair's outperform rating on Jack Henry ( JKHY ) stock compares to a hold rating across the board by Wall Street analysts , SA Authors and Seeking Alpha's Quant rating system .
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Jack Henry stock rises after William Blair starts with outperform rating