Analysts have revised their price target for i3 Verticals downward, lowering it from $37.00 to $34.67. This change comes as near-term growth expectations are tempered by delays in professional services revenue and recent business divestitures.
Analyst Commentary
Recent analyst commentary on i3 Verticals reveals a mixture of optimism and caution regarding the company’s outlook, reflected in both the new price target and forward-looking statements.
Bullish Takeaways
- Bullish analysts note that the delay in revenue recognition for certain professional services contracts is largely a matter of timing and not a fundamental deterioration in demand.
- Recurring revenue streams remain stable, which suggests resilience in the company’s core business amidst sector volatility.
- Despite divestitures and project-specific pushes, the overall growth algorithm is considered intact for the medium to long term.
Bearish Takeaways
- Bearish analysts are cautious about the impact of recent business divestitures and one-time items, which have created noise and complexity in evaluating the growth trajectory.
- The muted full-year outlook, particularly for FY26, is attributed to delayed project revenues in key verticals such as utilities and transportation.
- Concerns remain that continued deferrals in nonrecurring professional services could pressure near-term valuation multiples and investor sentiment.
What's in the News
- i3 Verticals, Inc. plans to pursue new acquisitions, focusing on opportunities that align with its strategic goals and strengthen its public sector vertical, according to President Frederick Stanford (Key Developments).
- The company provided fiscal 2026 earnings guidance and projects revenue between $217 million and $232 million (Key Developments).
- A new contract was announced with the Supreme Court of Appeals of West Virginia for the delivery of the i3 CourtOne Case Management Solution. The contract is estimated to generate eight figures in revenue over six years and aims to modernize the state's judicial system (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has decreased from $37.00 to $34.67, reflecting tempered expectations for near-term growth.
- Discount Rate has fallen slightly, moving from 8.41% to 8.41%, suggesting a marginal change in perceived risk or return requirements.
- Revenue Growth outlook has shifted significantly upward, from a decline of -1.0% to an anticipated growth of 8.8%.
- Net Profit Margin estimate has dropped from 15.2% to 9.7%, indicating expectations for lower profitability.
- Future P/E Ratio has declined modestly from 42.5x to 41.6x, reflecting a slight moderation in projected earnings multiples.
Have other thoughts on i3 Verticals?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeDisclaimer
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.