William Blair starts Jack Henry at Outperform with fundamental drivers intact

As previously reported, William Blair analyst Cristopher Kennedy initiated coverage of Jack Henry with an Outperform rating without a price target. Revenues have grown at a compound annual rate of 7% and adjusted EPS at about 12% since fiscal 2011, noted Kennedy, who sees the traditional fundamental drivers of the business remaining "largely intact." FY23 earning will be pressured by the acquisition of Payrailz, but he estimates 11% EPS growth to $5.47 in FY24, Kennedy tells investors.