Analyst Bryan Bergin from TD Cowen maintained a Buy rating on Fiserv and decreased the price target to $188.00 from $233.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Bryan Bergin has given his Buy rating due to a combination of factors that suggest potential upside for Fiserv’s stock despite recent challenges. The company’s disappointing second-quarter results and lowered future growth targets have put pressure on its stock, yet Bergin believes the current valuation does not fully reflect Fiserv’s differentiated assets and the potential for mid-teens earnings growth.
While the company faces execution challenges, particularly in its Merchant segment, Bergin sees a range of initiatives that could stabilize operations and support a 10% revenue growth along with a 15%+ earnings expansion. The stock’s significant year-to-date decline, driven by multiple contractions rather than fundamental weaknesses, presents an opportunity. Bergin suggests that concerns over operational reliability are temporary and that the current valuation of Fiserv’s Merchant Solutions is overly conservative compared to peers, indicating potential for recovery and growth.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $200.00 price target.
Based on the recent corporate insider activity of 68 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FI in relation to earlier this year.