S1 rises after Stephens upgrades to 'Overweight'

In afternoon trading, S1 shares rose 66 cents, or 9.9 percent, to $7.36. The stock has ranged from $5.25 to $9.79 over the past year.

Brett Huff raised his rating to "Overweight" from "Equal Weight" citing "increased confidence in the company's execution ability and resilience in the face of potential tighter bank spending."

Huff also said that Wall Street's expectations for the company's performance are "reasonable." Furthermore, the company's revenue opportunities in at least the near term are good, as the company may benefit from competitive disruptions.

Huff said that S1's stock price is likely weighed down by worries over a weak banking environment, poor execution in the past, and belief that the company's revenue is "lumpy."

"We think all three fears are meaningfully more moderate than the market is reflecting in the company's stock price," Huff wrote. "We think near-term catalysts include meeting or beating second-quarter expectations, closing large deals and buying back stock."

Huff maintained a $9 price target on shares of S1.