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Digitization And AI Will Boost Public Sector Expansion

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IIIV
AnalystConsensusTarget
Not Invested
Published 28 May 2025

Update shared on15 Aug 2025

Fair value Increased 16%
AnalystConsensusTarget's Fair Value
US$37.00
15.2% undervalued intrinsic discount
15 Aug
US$31.36
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1Y
46.7%
7D
-0.3%

Analysts have raised their price target for i3 Verticals from $32.00 to $37.00, citing Q3 outperformance, successful public sector transition, improved business clarity, and a stronger risk/reward profile.


Analyst Commentary


  • Bullish analysts cite outperformance in Q3 results, reflecting successful execution and a smooth transition to a pure-play Public Sector software company.
  • Improved visibility and clarity into the business model post-transition is considered supportive for investor confidence.
  • Operating momentum and "clean execution" position the company favorably for potential revenue acceleration and further market share gains.
  • A "strong setup" going into FY26 and enhanced risk/reward dynamics are seen as tailwinds for the stock’s near-term performance.
  • Rising takeout potential and a more attractive relative valuation compared to software peers are noted as drivers for upward price target revisions.

What's in the News


  • i3 Verticals is actively seeking acquisitions, focusing on opportunities in the public sector vertical and integrating targeted AI solutions to enhance effectiveness for customers.
  • The Board of Directors authorized a share repurchase plan, allowing up to $50 million in Class A Common Stock buybacks, expiring on the earlier of September 30, 2026, or full expenditure.
  • i3 Verticals was added to the Russell 2000 Defensive Index, Russell 2000 Growth-Defensive Index, and Russell 2000 Value-Defensive Index.

Valuation Changes


Summary of Valuation Changes for i3 Verticals

  • The Consensus Analyst Price Target has significantly risen from $32.00 to $37.00.
  • The Consensus Revenue Growth forecasts for i3 Verticals has significantly fallen from 1.3% per annum to -0.3% per annum.
  • The Future P/E for i3 Verticals has significantly fallen from 52.80x to 31.47x.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.