William Blair analyst Christopher Kennedy has reiterated their bullish stance on FIS stock, giving a Buy rating today.
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Christopher Kennedy’s rating is based on several factors that highlight the potential for Fidelity National Information Services (FIS) to perform well in the future. Despite some short-term fluctuations due to mergers and acquisitions, nonrecurring revenue, and foreign exchange impacts, the company’s fundamentals appear stable. In the recent quarter, FIS exceeded expectations in adjusted EBITDA and maintained its full-year free cash flow target, indicating strong financial health.
Furthermore, FIS has enhanced its competitive position through the development and acquisition of more competitive products, which has improved customer retention and expanded its business pipeline. The anticipated asset swap with Global Payments is expected to enhance EBITDA margins and EPS, adding substantial free cash flow. This strategic move, along with a focus on reducing leverage, positions FIS to allocate significant cash flow towards mergers and acquisitions or share repurchases, further supporting its growth prospects.
In another report released today, Mizuho Securities also reiterated a Buy rating on the stock with a $85.00 price target.