Pacific Crest Cuts Jack Henry to 'Market Perform'
Pacific Crest downgraded Jack Henry (JKHY ) to market perform from strong buy.
Analyst Tim Butler notes management did not demonstrate much confidence in the near-term outlook for the company in Q3 or Q4, and stated that earnings per share would reach only 80%-90% of consensus estimates over these quarters. He says it could take some time for the company to resume its targeted EPS growth pace of 25%. As a consequence, he believes shares could remain range-bound until the company demonstrates its growth is back on track. He cut the $0.18 Q2 fiscal 2002 (June) EPS estimate to $0.15, and cut the $0.76 fiscal 2002 estimate to $0.68, as well as trimmed the $0.97 fiscal 2003 to $0.82. Finally, Bulter cut the $33 12-month target to $26.