In a report released yesterday, Harshita Rawat from Bernstein maintained a Hold rating on Fidelity National Info (FIS – Research Report), with a price target of $88.00.
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Harshita Rawat’s rating is based on several factors that collectively suggest a more cautious approach to Fidelity National Info’s stock. The company’s recent quarterly results were less than impressive, as they fell short in crucial areas like banking revenue growth and free cash flow conversion. These metrics not only missed expectations but also indicated underlying challenges in the company’s operations, such as pressures from capital expenditures and working capital.
Furthermore, the company’s future guidance for 2025 remains conservative, with free cash flow conversion projections below their investor day targets. The stock has seen a decline as investor optimism wanes, and the frequent adjustments made each quarter are adding pressure to the stock’s valuation. Although the current stock valuation appears to be more aligned with historical levels, the complex financial figures and adjusted metrics suggest that the risk-reward balance has only moderately improved, hence the Hold rating.
Rawat covers the Financial sector, focusing on stocks such as PayPal Holdings, Mastercard, and Visa. According to TipRanks, Rawat has an average return of 18.8% and a 73.85% success rate on recommended stocks.