Jack Henry rises as UBS says bank-induced selloff a buying opportunity

Jack Henry & Associates

15/03/2023 15:38

** Jack Henry & Associates Inc's  JKHY.O  shares up 1.4% at
$143.78 on Weds after UBS raises payments tech provider to "buy"
from "neutral"
    ** JKHY one of just a handful of S&P 500 Tech  .SPLRCT 
components in the green on Weds amid broader market slide
    ** UBS analyst Rayna Kumar says stock's selloff tied to
fears of US bank failure contagion are "overblown" despite co's
direct exposure to financial institutions
    ** Over medium-term, co remains poised to generate
mid-to-high single digit top-line growth, "driven by the still
strong bank and credit union IT spend demand, reported record
quarterly sales in 2Q/FY23 and potential for additional
competitive takeaways," Kumar says in note
    ** Kumar sticks with $184 PT, saying with shares trading at
5-yr low on estimated NTM P/E (27x) and NTM EV/EBITDA (15x),
valuation represents an "attractive" entry point
    ** Now, 3 of 14 analysts rate JKHY "buy" or "strong buy",
rest "hold", per Refinitiv; median PT of $178 down from $190.50
on Jan 15
    ** With advance on Weds, JKHY off 18% YTD including ~12%
drop over the past week

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))