Analyst James Faucette from Morgan Stanley maintained a Hold rating on Fidelity National Info (FIS – Research Report) and decreased the price target to $86.00 from $92.00.
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James Faucette has given his Hold rating due to a combination of factors influencing Fidelity National Info’s current and future performance. One significant factor is the trading valuation range of approximately 13-14 times the projected 2026 earnings per share, which Faucette believes adequately reflects the company’s earnings potential. This valuation is seen as suitable when compared to peers who are consistently growing earnings at a higher rate and trading at a higher multiple.
Another reason for the Hold rating is the cautious outlook on the company’s execution and ability to achieve sustained growth in its Banking segment. Delays in client implementations and the variability of one-time items contribute to this uncertainty. While there is a favorable demand environment and potential benefits from banking mergers and acquisitions, Faucette sees limited opportunities for upward earnings revisions that could boost the stock’s multiple. Among incumbent processors, Morgan Stanley prefers other companies like GPN and FI due to their attractive valuations and consistent growth.
Faucette covers the Technology sector, focusing on stocks such as Endava, Fiserv, and Accenture. According to TipRanks, Faucette has an average return of 5.7% and a 64.88% success rate on recommended stocks.
In another report released today, Susquehanna also downgraded the stock to a Hold with a $81.00 price target.