Fiserv downgraded to Neutral from Buy at UBS

UBS analyst Timothy Chiodo downgraded Fiserv (FI) to Neutral from Buy with a price target of $75, down from $170. The near- to medium-term outlook reset and the associated relative levels of uncertainty make it challenging to recommend the shares despite a reduced valuation, the analyst tells investors in a research note. Fiserv has signaled increased investment with the CEO calling out prior decisions to defer investments and cut costs, which had improved short-term results, but limited Fiserv’s ability to serve clients, the firm says, adding that these investments include the potential for increased capex, which could pressure free cash flow conversion over the coming years.