DA Davidson keeps a Buy rating and $36 price target on i3 Verticals while adding the stock to the firm’s STAMPEDE List seeking companies that reflect untapped value. The company could sell its Merchant Services segment at approximately 8-times expected FY24 segment adjusted EBITDA forecast of $42M and use proceeds to dramatically reduce its net leverage, the analyst tells investors in a research note. Once complete, the market will then value the pure-play Vertical Software company at a substantially higher valuation, the firm added.
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