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23% Upside Expected For NIC Inc, According To Imperial Capital

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After revising Nic. Inc’s (NASDAQ: EGOV) estimates to see the impact of recent contract expirations, Imperial Capital analyst Jeff Kessler raised his rating from In-Line to Outperform with a 12-month price target of $23.

“We continue to believe that NIC’s business model gives it significant competitive advantage over other service providers that typically use a time-and-materials project-based pricing approach that is less customizable for the client, and is harder to turn into a long-term relationship,” Kessler said.

Even with the loss of revenue and profit from the Tennessee and Iowa portal contracts, Kessler remains confident in Nic’s management team.

Additionally, he noted, “About 90% of NIC’s revenues are recurring and shared on a per-click basis, with typical contracts ranging from 3 to 7 years in length. Not including the local business, we estimate the eGovernment market opportunity at over $1.5bn, compared to NIC’s LTM revenue of $323mn.”

Nic was up nearly 2 percent at $19.10 in Monday’s trading session.

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Latest Ratings for EGOV

DateFirmActionFromTo
Jul 2017Imperial CapitalUpgradesIn-LineOutperform
Jun 2017DA DavidsonInitiates Coverage OnNeutral
Feb 2017Loop CapitalInitiates Coverage OnHold

View More Analyst Ratings for EGOV
View the Latest Analyst Ratings

Posted-In: imperial capital Jeff KesslerAnalyst Color Upgrades Analyst Ratings

 

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