Jack Henry & Associates (JKHY) is set to benefit from near-term market share gains in Core Processing, RBC Capital Markets said in a Tuesday note.
"Near-term market share gains should be a catalyst," it said.
"With the well telegraphed issues & Core platform transition at one of JKHY's largest competitors, Fiserv (FISV), we believe market share gains in Core Processing are highly likely," the report added.
RBC analysts estimate that over 100 wins could swing in its favor over the next several years, above the annual run rate of roughly 50 per year, potentially adding between $60 million to $80 million in incremental Core Processing revenues.
Given the possibility for incremental share gains in its Core segment and new Core agnostic product roadmap, they also have increased confidence in its path to FY26 revenue growth.
RBC upgraded the stock to outperform from sector perform and raised its price target to $210 from $185.
Price: 187.70, Change: +0.05, Percent Change: +0.03
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