On Friday, DA Davidson, a well-known financial services firm, increased its stock price target on shares of ACI Worldwide (NASDAQ:ACIW) to $39 from the previous target of $37, while reaffirming a Buy rating on the stock. The adjustment follows ACI Worldwide's announcement of its fourth-quarter earnings, which surpassed the firm's expectations regarding revenue and adjusted EBITDA.
ACI Worldwide, a payment systems company, reported its fourth-quarter financial results, which included revenue and adjusted EBITDA figures that were slightly higher than DA Davidson's projections.
Alongside the earnings report, ACI Worldwide also provided their initial financial outlook for the year 2024. The forecasted midpoints for annual guidance ranges were noted to be higher than both DA Davidson's and the consensus estimates.
In response to the financial disclosures and guidance, DA Davidson fine-tuned its forecasts for ACI Worldwide. The firm indicated that it had increased its adjusted EBITDA expectations for the years 2024 and 2025. This optimistic outlook on ACI Worldwide's financial performance is reflected in the firm's decision to maintain a Buy rating on the stock.
The revised price target of $39 represents DA Davidson's confidence in ACI Worldwide's growth prospects. This confidence is rooted in the company's recent financial performance and its forward-looking guidance, which suggests a positive trajectory for the upcoming years.
ACI Worldwide's latest financial results and the subsequent price target increase by DA Davidson highlight the company's current financial health and its potential for future growth. The updated price target and maintained Buy rating suggest that ACI Worldwide could be an attractive investment opportunity based on its recent performance and expected future results.
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