J.P. Morgan Reiterates a Buy Rating on Black Knight Financial Services

By Jason Carr

In a report released today, Tien Tsin Huang from J.P. Morgan reiterated a Buy rating on Black Knight Financial Services (NYSE: BKFS), with a price target of $46. The company’s shares opened today at $38.

Tsin Huang said:

“BKFS delivered a strong, clean 3Q highlighted by 14% growth in revenue and EBITDA resulting in EPS of $0.29 vs. JPM/Street at $0.29. We calculated organic revenue growth at 10%, accelerating about two points sequentially, making it one of the faster growers in our processing coverage. BKFS added to its already large backlog with solid new wins like Stonegate and Santander and several expansions. Encouragingly, growth was balanced, highlighted by strength in origination tech from deal ramps, and overall implementation timelines appear to be on track. Guidance was narrowed and we remain confident in our estimates with big backlog offering potential for stable to accelerating growth over the next two years depending on timing of deal ramps. Maintain OW rating.”

According to TipRanks.com, Huang is a 4-star analyst with an average return of 2.7% and a 57.3% success rate. Huang covers the Technology sector, focusing on stocks such as Broadridge Financial Solutions Llc, Automatic Data Processing, and Fidelity National Info.

Currently, the analyst consensus on Black Knight Financial Services is Strong Buy and the average price target is $46, representing a 21.1% upside.

In a report released today, Barclays also reiterated a Buy rating on the stock with a $43 price target.

The company has a one year high of $42.19 and a one year low of $25.24. Currently, Black Knight Financial Services has an average volume of 108.8K.

Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is neutral on the stock. Most recently, in June 2016, David K. Hunt, a Director at BKFS sold 10,627 shares for a total of $387,886.

Black Knight Financial Services, Inc. provides integrated technology, workflow automation and data and analytics to the mortgage industry. It operates through the Technology and Data & Analytics segments. The Technology segment offers software and hosting solutions that support loan servicing, which includes the core mortgage servicing, specialty mortgage servicing including loss mitigation and default workflow management, loan origination and settlement services. The Data & Analytics segment offers solutions to enhance and support its technology products in the mortgage, real estate and capital markets industries. The company was founded on October 27, 2014 and is headquartered in Jacksonville, FL.