Fidelity National Information Services: Strategic Asset Swap and AI Integration Drive ‘Buy’ Rating

William Blair analyst Christopher Kennedy has reiterated their bullish stance on FIS stock, giving a Buy rating on May 16.

Christopher Kennedy has given his Buy rating due to a combination of factors that highlight Fidelity National Information Services’ potential for growth and stability. The pending asset swap is a significant driver, expected to enhance the company’s financial performance by improving EBITDA margins and increasing free cash flow. This strategic move is anticipated to strengthen FIS’s balance sheet and provide substantial resources for future investments or share repurchases.
Additionally, under the leadership of CEO Stephanie Ferris, FIS has been focusing on improving product reliability and customer service, which has resulted in more competitive offerings and a robust business pipeline. The integration of AI into product development and the enhancement of digital capabilities are key initiatives that further position FIS for success. With a high percentage of recurring revenue providing strong visibility, and the potential for cross-sell synergies from the Global Payments issuer business, FIS is well-positioned to capitalize on growth opportunities in the financial services sector.

In another report released on May 16, Compass Point also maintained a Buy rating on the stock with a $103.00 price target.