Jack Henry initiated with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of Jack Henry & Associates with a Neutral rating and $173 price target, which represents 5% upside. The analyst views Jack Henry as the premier provider of core processing technology for regional and community banks and credit unions. However, the firm sees some incremental risks related to the macro backdrop in the company’s payments segment, where it says further slowdowns could get in the way of a return to the company’s historical growth algorithm. Goldman would look for less macro uncertainty and/or a better entry point on valuation to get more constructive.