Needham analyst Mayank Tandon has maintained their neutral stance on ACIW stock, giving a Hold rating on April 24.
Mayank Tandon has given his Hold rating due to a combination of factors. ACI Worldwide’s first-quarter performance was notably strong, driven by the timing of deal closures, which included the addition of two new bank clients. This resulted in a significant increase in revenue for the payment software segment and a substantial rise in annual recurring revenue from new bookings.
However, despite these positive results, the outlook for the second quarter fell short of expectations, largely due to the early signing of deals in the first quarter. Additionally, the company’s fiscal year 2025 guidance remains mostly unchanged. With the stock trading at an FY26 EV/EBITDA multiple of approximately 11x, Tandon views the risk-reward balance as neutral, particularly given the unpredictable nature of license sales and bookings. The rating could be upgraded if ACI Worldwide continues to deliver strong results and shifts towards more stable, recurring revenue streams.
According to TipRanks, Tandon is an analyst with an average return of -4.4% and a 37.90% success rate. Tandon covers the Technology sector, focusing on stocks such as Exlservice Holdings, Epam Systems, and WNS.
In another report released on April 24, D.A. Davidson also maintained a Hold rating on the stock with a $60.00 price target.