William Blair analyst Christopher Kennedy has reiterated their bullish stance on FIS stock, giving a Buy rating on April 14.
Christopher Kennedy has given his Buy rating due to a combination of factors including Fidelity National Information Services’ strategic asset swap with Global Payments. The transaction involves selling a 45% stake in Worldpay and acquiring Global Payments’ Issuer Solutions business, which is expected to be accretive to FIS’s adjusted EBITDA margins, EPS, and free cash flow.
The deal aligns with FIS’s strategic focus on enhancing its payments business and expanding into adjacent verticals. Despite the complexity it adds to FIS’s financials, the acquisition is anticipated to create significant cross-selling opportunities, particularly in the issuer-processing platform that focuses on debit, while Global Payments enhances credit capabilities. This move is expected to drive growth in loyalty products and bolster FIS’s position in the B2B payments space, tapping into a substantial market opportunity.
In another report released on April 14, Bank of America Securities also maintained a Buy rating on the stock with a $87.00 price target.