(Updates with the analyst's commentary.)
RBC cut the price target on Jack Henry & Associates (JKHY) to $173 from $180 while maintaining its outperform rating.
Jack Henry reported 43 new core deals through fiscal Q3, up from 28 during the same period last year, analysts Daniel Perlin and Matthew Inglis wrote in a Wednesday note.
Management expects small and medium businesses to turn into the "fastest-growing and second-largest revenue component within Payments" by fiscal full-year 2028, the analysts mentioned in the note.
Jack Henry expects to reach high-90% penetration of the firm's "core base migrated to the private cloud" over time, up from the current approximate of 79%, RBC said, adding cloud migrations increase revenue for banks over the contract term.
Jack Henry & Associates has an average rating of overweight and mean price target of $183.77, according to analysts polled by FactSet.
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Price: $124.94, Change: $+0.72, Percent Change: +0.58%