TD Cowen analyst Bryan Bergin upgraded the rating on Fidelity National Info (FIS – Research Report) to a Buy today, setting a price target of $92.00.
Bryan Bergin has given his Buy rating due to a combination of factors that highlight the strategic and financial advantages of Fidelity National Info’s recent business decisions. The company has shifted its focus from a volatile macroeconomic environment to a more stable and predictable business model by divesting a 45% stake in Worldpay and acquiring Issuer Solutions. This transition is expected to enhance recurring revenue, improve margins, and increase free cash flow, making FIS a more attractive investment.
Furthermore, the Issuer Solutions acquisition is seen as a cleaner and more promising transaction compared to previous deals, with minimal near-term revenue synergies and a clear path to reducing net leverage. The modernization of Issuer Solutions’ platform to a fully cloud-based solution by 2025, along with significant client renewals, positions FIS for future growth. The company’s strong preliminary first-quarter performance also reduces risks for fiscal year 2025, providing an opportunity for multiple expansion and potential upside in free cash flow. These factors, combined with a reasonable valuation and attractive dividend yield, support the Buy rating and increased price target of $92.
In another report released today, Barclays also maintained a Buy rating on the stock with a $85.00 price target.