i3 Verticals Raises Price Target to $40: Analysts' Forecast and GF Value.

Stephens & Co. has raised the price target for i3 Verticals (IIIV) to $40, a 14.29% increase from the previous target of $35. The company offers integrated payment and software solutions to small and medium-sized businesses. Based on 6 analyst estimates, the average target price is $34.33, with an average brokerage recommendation of 1.8, indicating "Outperform" status. The estimated GF Value for i3 Verticals is $22.46, suggesting a downside of 29.17% from the current price.

Stephens & Co. has increased its price target for i3 Verticals (IIIV) to $40, a 14.29% increase from the previous target of $35.00. This move comes following the company's better-than-expected third-quarter results, which saw 8% organic growth and 12.4% total revenue growth. The stock has shown impressive momentum, gaining over 11% in the past week and currently trading near its 52-week high of $32.33 [1].

i3 Verticals reported 120 basis points of adjusted EBITDA margin expansion and $26 million in share buybacks. The company's gross profit margins stood at 90.72%, and revenue growth over the last twelve months was 25.08%. Notably, annual recurring revenue (ARR) growth accelerated to 12%, and software-as-a-service (SaaS) revenue grew by 24%. Despite these strong results, the company expects lower margin expansion and growth in Q4 due to tough comparisons and planned investments [1].

Raymond James also raised its price target on i3 Verticals to $39.00 from $33.00, maintaining a Strong Buy rating. The company's fiscal third-quarter 2025 results exceeded expectations, with an adjusted diluted earnings per share of $0.23, surpassing the forecasted $0.21. Revenue reached $51.9 million, beating the expected $49.89 million by 4.03% [2].

Stephens and Raymond James both highlighted i3 Verticals' "ample capital flexibility" to pursue acquisitions and organic investments, positioning the company for market share gains and revenue acceleration. i3 Verticals is viewed as a pure-play public sector software business with a compelling growth strategy supplemented by strategic acquisitions [2].

Based on 6 analyst estimates, the average target price is $34.33, with an average brokerage recommendation of 1.8, indicating an "Outperform" status. The estimated GF Value for i3 Verticals is $22.46, suggesting a downside of 29.17% from the current price.

References:
[1] https://ca.investing.com/news/analyst-ratings/stephens-raises-i3-verticals-stock-price-target-to-40-on-strong-q3-results-93CH-4149594
[2] https://au.investing.com/news/analyst-ratings/raymond-james-raises-i3-verticals-stock-price-target-to-39-on-strong-results-93CH-3969642