ACI Worldwide (ACIW) just revealed a strategic partnership with BitPay, designed to give merchants and payment service providers expanded access to digital currency solutions. This move builds on industry momentum for cryptocurrency integration.

ACI Worldwide's announcement arrives amid a resurgence in momentum for the stock, highlighted by a 10.6% gain in its 90-day share price return. While the latest one-year total shareholder return is down 4.4%, long-term investors have seen impressive growth, with total shareholder returns of 128.4% over three years and 63.1% over five years. The recent news further positions ACI as a forward-thinking leader in digital payments, a theme that continues to attract both attention and investment.

If the push toward digital innovation piqued your interest, now's a great time to broaden your search and discover fast growing stocks with high insider ownership

But with shares gaining recent momentum, a sizable discount to analyst price targets, and solid long-term growth, investors may ask: is ACI Worldwide undervalued, or is the market already pricing in these future gains?

Most Popular Narrative: 21.8% Undervalued

With the fair value from the most popular narrative coming in meaningfully above the recent close, the market may be missing something. Let’s look at the catalyst behind that bullish outlook.

The official launch and positive customer reception of Connetic, ACI's next-generation cloud-native payments hub with AI-powered decisioning and real-time capabilities, positions the company to capitalize on increasing demand for scalable, secure digital payment processing and real-time payments globally. This supports accelerating recurring revenue growth and higher margins.

Want to see the assumptions fueling this high target? The secret lies in bold growth forecasts for digital payments, plus margin gains most companies dream of. If you want to understand how a tech platform could transform ACI’s business, the full narrative reveals all the numbers and logic behind this valuation.

Result: Fair Value of $64.60 (UNDERVALUED)

However, intensifying competition and unforeseen shifts in digital payment regulations could present challenges to ACI Worldwide's growth story and the optimistic view presented above.

Build Your Own ACI Worldwide Narrative

If you have a different perspective or want to examine the data hands-on, you can put together your own narrative in just minutes. Do it your way

A great starting point for your ACI Worldwide research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.