William Blair analyst Christopher Kennedy has reiterated their bullish stance on FIS stock, giving a Buy rating on November 6.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Christopher Kennedy’s rating is based on several strategic developments at Fidelity National Information Services (FIS) that enhance its market position and growth potential. The company’s internal initiatives have strengthened its competitive edge, and the upcoming asset swap is anticipated to act as a significant catalyst for growth. This merger will allow FIS to serve 60% of the world’s top 150 banks, unlocking substantial cross-selling opportunities and additional market potential.
Furthermore, the asset swap with Global Payments is projected to be accretive to earnings, boosting free cash flow significantly in the coming years. FIS plans to use this increased cash flow to reduce leverage and potentially engage in mergers and acquisitions or stock repurchases. The steady demand for IT solutions in the financial services sector, coupled with FIS’s strong renewal retention and rising recurring revenue, further supports the Buy rating. Kennedy sees the current market conditions as an opportunity for long-term investors, especially given the challenges faced by competitors like Fiserv, which may benefit FIS.
In another report released on November 6, Compass Point also initiated coverage with a Buy rating on the stock with a $90.00 price target.