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Shares of ACI Worldwide (NASDAQ:ACIW) increased by 3% on Friday, when brokerage Jefferies initiated coverage on the stock with a Buy rating and $38.00 price target, forecasting accelerating growth in FY24.
“We expect the ACI to benefit from banks prioritising modernized payment infrastructure,” Jefferies analysts said.
“Growth is set to accelerate in FY24, and we believe it can sustain at a higher digit due to modernization of banks’ payment systems and emerging growth drivers (real-time payments, SaaS provision for mid-market banks size), which we expect to support multiple expansion,” the analysts added.
ACI’s support of more than 25 national/regional real-time payment schemes worldwide enables them to capture the growing demand for real-time payments and Jefferies expected further cross-sell/up-sell benefits from anti-fraud solutions .
Jefferies added that he is further encouraged by the company’s optimistic outlook for 7-9% growth in FY24, which is expected to be supported by accelerating growth in banking and trading and stable growth in invoicing businesses.
ACI was rated a Strong Buy by Seeking Alpha’s Quant Ratings, scoring a B for profitability and a B+ for momentum. Sell-side analysts also give a favorable read on the stock.