UBS raises Jack Henry stock price target to $170 on execution strength

UBS has increased its price target for Jack Henry & Associates shares (NASDAQ:JKHY) to $170, up from $165, while maintaining a Neutral rating. The firm anticipates modestly weaker revenues in the first quarter of fiscal 2027 due to the timing of the company's annual client conference and more challenging comparisons to the first half.

However, second-quarter growth is expected to outpace the first quarter by approximately 100 basis points. Margins are projected to gradually improve throughout fiscal 2027 as comparisons become easier in the second half, with the first half reflecting the impact of increased costs in the fourth quarter of fiscal 2026. UBS also sees continued strong execution and success across all segments, with about 59% of trifecta wins in fiscal 2026.

The company has signed 65 debit and credit card deals, 61 Financial Crimes Defender deals, 45 Treasury Management deals, and 219 Banno signings in the previous fiscal year. UBS has also raised its dividend for 22 consecutive years, demonstrating consistent financial performance.