BTIG analyst Andrew Harte maintained a Buy rating on Fiserv (FI – Research Report) today and set a price target of $240.00.
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Andrew Harte has given his Buy rating due to a combination of factors indicating strong future growth prospects for Fiserv. The company’s guidance for organic revenue growth of 11% in FY25, along with an expected 15% to 17% increase in adjusted EPS, demonstrates the durability and high-quality growth of the business. Notably, the Merchant Solutions segment is anticipated to benefit from increased Clover VAS penetration and geographic expansion, while Financial Solutions is expected to accelerate revenue growth in the second half of FY25 as new clients like Target and Verizon go live.
Moreover, Fiserv’s valuation, trading at a 4.5% FY25E FCF yield and 22x FY25E adjusted P/E, is considered attractive given its high-quality payments and fintech exposure. The expected 2H revenue growth acceleration, particularly in the Financial Solutions segment, is further supported by a strong pipeline of customers and opportunities in embedded finance with partners like DoorDash. These factors collectively support a Buy rating with a price target of $240, representing confidence in the company’s ability to achieve its FY26 targets.
In another report released yesterday, Morgan Stanley also reiterated a Buy rating on the stock with a $258.00 price target.