Buy Rating for Fiserv: Growth Potential Driven by Clover’s Market Strength and Global Distribution Network

William Blair analyst Andrew Jeffrey has maintained their bullish stance on FI stock, giving a Buy rating today.

Andrew Jeffrey has given his Buy rating due to a combination of factors that highlight Fiserv’s potential for growth and market strength. The recommendation comes after a significant decline in Fiserv’s stock price, presenting a buying opportunity. Jeffrey emphasizes the strong position of Clover, Fiserv’s software-integrated point-of-sale offering, which is poised to capture a substantial share in the U.S. payments market. He believes that concerns about competition are exaggerated and expects Clover to maintain a steady growth in transaction volumes.
Furthermore, Jeffrey points out the strategic advantage Fiserv gains from its extensive global distribution network, including partnerships with around 1,000 banks. This network is expected to boost Clover’s volume growth as banks promote the product alongside other financial solutions. Additionally, he notes the underappreciated strength of Fiserv’s financial solutions segment, predicting an acceleration in organic growth driven by new client acquisitions and enhanced value-added services. The company’s management has set ambitious revenue targets for Clover, supported by consistent growth in transaction volumes and international expansion, which Jeffrey views as achievable.

Jeffrey covers the Technology sector, focusing on stocks such as Fiserv, Affirm Holdings, and Corpay Inc. According to TipRanks, Jeffrey has an average return of 13.9% and a 64.43% success rate on recommended stocks.

In another report released today, BTIG also maintained a Buy rating on the stock with a $215.00 price target.