Shares of Goldleaf Financial Solutions Inc. climbed Friday after an analyst reiterated his rating for the Brentwood, Tenn., banking technology provider, citing its purchase of the imaging company Alogent Corp.
"We believe the transaction is a positive for GFSI's revenue mix, which has been plagued recently by weak volumes in the firm's accounts receivable business, a segment that accounted for nearly 50% of the firm's top line," Matthew McCormack, an analyst with Friedman, Billings, Ramsey & Co. Inc. wrote in a research note published Friday.
He reiterated his "market perform" rating on Goldleaf's stock and his price target of $3 a share.
Goldleaf said Thursday that it had purchased Alogent for $42.5 million. Goldleaf, which offers its payments software mainly to small banks, now hopes to sell more in the big-bank market where Alogent has focused.
He wrote that the purchase would "bolster GFSI's existing remote deposit and image capture offerings, as well as provide numerous opportunities for cross-selling into Alogent's customer base."
By Friday afternoon, Goldleaf's stock had climbed 2.14% from Thursday, to $1.43 a share.
