Optimism for Fiserv: Analyst Predicts Robust Growth in Merchant Solutions, Upgrades Stock
Portfolio Pulse from Anusuya Lahiri
KeyBanc analyst Alex Markgraff upgraded Fiserv, Inc (NYSE:FI) to Overweight with a $160 price target, citing optimism for robust growth in merchant solutions. Markgraff's analysis suggests that the payments and FinTech sectors are trading at significant discounts, and he sees potential for Fiserv's revenue and profitability to exceed market expectations. The analyst highlights Clover and Carat's performance as drivers for potential estimate revisions and views the company's balanced spend base as defensively positioned. Markgraff's Q4 revenue projection for Fiserv is $2.52 billion, with an EPS of $0.97, which is below the consensus of $4.69 billion in revenue and $2.15 EPS. Fiserv's stock traded higher by 1.53% to $134.60 following the upgrade.
January 08, 2024 | 8:11 pm
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POSITIVE IMPACT
Fiserv, Inc received an analyst upgrade from KeyBanc to Overweight with a price target of $160. The upgrade is based on the potential for robust growth in merchant solutions and the performance of Clover and Carat. The analyst's revenue and EPS projections for Q4 are below consensus, but the stock price increased following the upgrade.
The upgrade by KeyBanc is a strong positive signal for Fiserv, indicating the analyst's belief in the company's growth potential, especially in its merchant solutions. This could lead to increased investor confidence and a potential rise in the stock price in the short term. The stock's positive movement following the news further supports this outlook. However, the analyst's projections being below consensus introduces some caution, which is why the confidence score is not at the maximum.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100