UBS analyst Timothy Chiodo has maintained their bullish stance on FIS stock, giving a Buy rating on November 17.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Timothy Chiodo has given his Buy rating due to a combination of factors including Fidelity National Info’s (FIS) strong performance in its Banking and Capital Markets segments. The company has experienced growth in its Banking segment, driven by quality recurring revenue from digital, payments, and lending services, which has slightly exceeded expectations. Additionally, FIS has benefited from serving larger banks, particularly during a significant period of bank consolidation.
FIS’s outlook for margin expansion by 2026 is promising, with expectations to exceed a preliminary outlook of over 60 basis points. This is attributed to a favorable revenue mix and cost-cutting initiatives. Furthermore, the company anticipates a steady improvement in free cash flow (FCF) conversion, targeting around 90% or higher by 2026, reflecting enhanced cash flow efficiency. These strategic financial and operational improvements underpin Chiodo’s positive assessment of FIS’s stock.
According to TipRanks, Chiodo is a 3-star analyst with an average return of 3.7% and a 44.30% success rate. Chiodo covers the Technology sector, focusing on stocks such as Block, Fidelity National Info, and Fiserv.
In another report released on November 17, TD Cowen also reiterated a Buy rating on the stock with a $89.00 price target.