Jack Henry & Associates (JKHY) is likely on track to achieve its 7% to 8% fiscal 2025 adjusted revenue growth guidance, Oppenheimer said in an earnings preview emailed Monday.

The firm said it believes the company will reiterate its full-year revenue guidance when it announces its fiscal Q1 results after hours on Tuesday.

Oppenheimer expects the company to record revenue growth of 5% to 6% in fiscal Q1 and then ramp as the fiscal year progresses. It is also modeling gains of 7% in Q2, 9% in Q3, and 8% in Q4, according to the note.

Meanwhile, Oppenheimer said it expects fiscal Q1 GAAP earnings to clock in at $1.61 per share and revenue to grow 5% to $600 million, both in line with consensus estimates.

"Jack Henry remains our best defensive idea, with [an estimated] 90%+ recurring revenue stream and high single-digit top-line growth potential," Oppenheimer said.

Oppenheimer reiterated its outperform rating on the stock with a price target of $206.

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