
JKHY Stock Forecast & Price Target
JKHY Analyst Ratings
Bulls say
Jack Henry & Associates has demonstrated a notable expansion in operating margins, with GAAP margins increasing 190 basis points year-over-year to 25.3%, supported by strong growth in deconversion fees and effective expense control. The company is experiencing strong demand for its core and complementary services, evidenced by securing 51 new core contracts and 47 contracts for its Financial Crimes Defender solutions, indicating robust market positioning and potential for future growth. Additionally, the introduction of favorable tax legislation and zero debt significantly enhances Jack Henry's financial flexibility, allowing for improved free cash flow conversion rates and capacity for future acquisitions.
Bears say
Jack Henry & Associates faces a challenging financial outlook primarily due to management's conservative expectations regarding deconversion fee revenue, which has declined by $8 million year-over-year, leading to a 16-cent headwind on earnings per share. The company is also exposed to significant risk factors including increased competition, potential margin compression from payment platform migrations, and the adverse impacts of ongoing bank consolidation and high valuation levels. Additionally, a slowdown in organic growth is anticipated, which could be exacerbated by decreased technology spending among banks and negative outcomes for Jack Henry's clients involved in mergers and acquisitions within the financial sector.
This aggregate rating is based on analysts' research of Jack Henry & Associates and is not a guaranteed prediction by Public.com or investment advice.
JKHY Analyst Forecast & Price Prediction
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