Tuesday, an analyst from DA Davidson increased the stock price target for ACI Worldwide (NASDAQ: NASDAQ:ACIW) to $48.00, up from the previous target of $42.00, while reiterating a Buy rating on the stock. The adjustment comes ahead of the company's second-quarter results, which are expected to be announced before market open on August 1st, followed by a conference call at 8:30 am ET.
ACI Worldwide, a payment systems company, is anticipated to either meet or slightly surpass the analyst's forecasts. The company is also expected to confirm its financial guidance for the year 2024 during the upcoming earnings call.
This guidance projects a constant currency revenue growth of 7%-9%, which would result in revenues between $1.55 billion and $1.58 billion, and an increase in adjusted EBITDA by 6%-10% year-over-year, reaching $418 million to $433 million.
The revised price target reflects the analyst's confidence in ACI Worldwide's performance and the decision to base valuation on the forecasts for the year 2026. The analyst's commentary indicates a belief that the company's financial results will align with the provided guidance ranges, underpinning the maintained Buy rating.
ACI Worldwide's forthcoming earnings report is highly anticipated by investors who will be looking for confirmation that the company is on track to achieve its stated financial targets for the year. The company's ability to meet or exceed expectations could be a positive indicator for its future performance.
The new price target of $48 represents an increased level of confidence in the company's growth prospects and financial stability. Shareholders and potential investors in ACI Worldwide will be paying close attention to the second-quarter results to gauge the company's trajectory and the potential impact on the stock's value.
In other recent news, ACI Worldwide, a prepackaged software services provider, has undergone significant changes in leadership and financial strategy. The company announced the departure of Chief Product Officer Debbie Guerra, with Scotty Perkins stepping in as interim Chief Product Officer. This executive shift is a noteworthy development in the company's leadership team.
ACI Worldwide also revealed a $400 million stock buyback program, including the remaining $65 million from its previous authorization. This move indicates the company's commitment to returning value to its shareholders.
In terms of financial performance, ACI Worldwide reported a 9% increase in total revenue to $316 million in the first quarter of 2024. The company's bank segment experienced a significant 20% revenue growth. Following these strong results, the company revised its full-year 2024 guidance, expecting revenue between $1.547 billion and $1.581 billion, and adjusted EBITDA ranging from $418 million to $433 million.
Analyst firm DA Davidson responded to these developments by maintaining a Buy rating on ACI Worldwide's stock and raising its price target from $36.00 to $42.00. The firm noted the company's strong first-quarter performance, with revenue and adjusted EBITDA exceeding their forecasts. These recent developments underline ACI Worldwide's ongoing commitment to delivering value to its investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.