Analyst James Faucette from Morgan Stanley maintained a Hold rating on I3 Verticals (IIIV – Research Report) and increased the price target to $27.00 from $22.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
James Faucette has given his Hold rating due to a combination of factors affecting I3 Verticals’ current market position. The company has shown encouraging signs of organic growth, with a 10% increase compared to the previous quarter’s 2%, and it has managed to overcome several one-time headwinds such as project delays and adjustments in state subsidies. This improvement, along with a strong performance in the SaaS sector, has boosted confidence in their growth prospects.
Despite these positive indicators, Faucette remains cautious due to the variability in license sales and the need for consistent execution of strategic priorities like mergers and acquisitions and high-single-digit organic growth. The recent stock price increase reflects a market appreciation of I3 Verticals’ transition to a pure-play vertical software company, but sustained performance is necessary before considering a higher rating. The robust M&A pipeline and improved financial position following asset sales are promising, yet the Hold rating persists until the company demonstrates consistent success in its strategic initiatives.
According to TipRanks, Faucette is a 5-star analyst with an average return of 5.7% and a 64.88% success rate. Faucette covers the Technology sector, focusing on stocks such as Endava, Fiserv, and Accenture.
In another report released on February 7, BMO Capital also maintained a Hold rating on the stock with a $26.00 price target.