Jack Henry initiated with Neutral on weaker growth at Compass Point

Compass Point last night initiated coverage of Jack Henry with a Neutral rating and $186 price target. The company offers core banking platform, complimentary services and payments to community and regional banks and credit unions, the analyst tells investors in a research note. The firm views Jack Henry as a “consistent grower, a compounder, growth stock that has low sensitivity to macro trends.” However, with bank mergers and acquisition “likely muted” until at least the second half of fiscal 2025, it expects weaker adjusted revenue growth in the company’s core segment and corporate, leading to lower than consensus revenue growth in 2025.