Optimistic Outlook for Fiserv: Strong Growth Prospects and Strategic Execution Support Buy Rating

BMO Capital analyst Rufus Hone maintained a Buy rating on Fiserv (FI – Research Report) yesterday and set a price target of $232.00.

Rufus Hone has given his Buy rating due to a combination of factors that suggest Fiserv’s growth prospects are strong. He anticipates that investor concerns regarding Clover and Merchant Solutions growth will diminish as Fiserv’s growth accelerates through 2025, with the company’s fiscal year 2025 guidance seen as achievable. Despite trimming forward EPS estimates slightly and reducing the target price to $232, Hone remains optimistic about Fiserv’s consistent execution, accelerating medium-term revenue growth, and differentiated product and distribution capabilities.
Furthermore, Hone expects the first quarter of 2025 to be the low point for Merchant Solutions, with significant acceleration anticipated in the second half of the year. This is supported by easier year-over-year comparisons, international expansion, and new product rollouts for Clover. Additionally, Fiserv’s Financial Solutions segment is tracking well, with organic revenue growth and large client wins positioning it to meet its growth guidance. The company’s long history of double-digit EPS growth and ongoing capital returns through share repurchases further bolster the Buy rating.

In another report released today, Barclays also maintained a Buy rating on the stock with a $265.00 price target.

Based on the recent corporate insider activity of 75 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.