UPDATE: Wedbush Securities Downgrades ACI Worldwide to Neutral, Reiterates $50 PT

In a report published Monday, Wedbush Securities downgraded its rating on ACI Worldwide ACIW from Outperform to Neutral, and reiterated its $50.00 price target. Wedbush noted, “We believe ACIW will continue to benefit from the growth of electronic payments and see upside to consensus in 2013. However, with shares up 57% YTD (S&P500 up 12%), we believe the upside to numbers is now reflected in the share price and that ACIW's multiple is capped by decelerating organic growth rates. Therefore, we are downgrading shares to NEUTRAL from OUTPERFORM. Expect upside to 2013 consensus EBITDA, but believe expectations already reflect this upside. We believe much of the outperformance YTD stems from a ‘buy-side consensus' closer to our expected $237 million 2013 EBITDA. We believe other consensus numbers (roughly $215 million for 2013 EBITDA) are lower based on overlooked synergies and eliminations of unrecognized revenue, which have been very clearly communicated by the company, not because of upside to fundamentals.” ACI Worldwide closed on Friday at $45.04.
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Posted In: Analyst ColorDowngradesAnalyst RatingsWedbush Securities
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