Positive Outlook for Fiserv’s Clover Platform Amid Short-term Challenges

Morgan Stanley analyst James Faucette has maintained their bullish stance on FI stock, giving a Buy rating today.

James Faucette has given his Buy rating due to a combination of factors related to Fiserv’s Clover platform and its anticipated growth trajectory. Despite a recent decline in Fiserv’s stock price following comments from the CFO, Faucette sees potential in the company’s ability to overcome current headwinds. The key issue has been the unexpected impact of Clover’s gateway conversion, which was not fully anticipated by the market or management.
However, Faucette believes that the negative effects of this conversion will diminish in the latter half of the year, with improvements expected in the third and fourth quarters. The anticipated growth in Clover’s volume, driven by factors such as the end of Leap Year effects and increased travel in Canada, supports a positive outlook. Additionally, the smaller economic impact of the gateway conversion suggests limited long-term effects on Fiserv’s top line, reinforcing the Buy rating.

Faucette covers the Technology sector, focusing on stocks such as Endava, Block, and Fiserv. According to TipRanks, Faucette has an average return of 5.5% and a 64.60% success rate on recommended stocks.

In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $210.00 price target.