Fiserv price target lowered to $85 from $178 at RBC Capital

RBC Capital lowered the firm’s price target on Fiserv (FI) to $85 from $178 and keeps an Outperform rating on the shares after its earnings miss and guidance cut. The magnitude of the reset speaks to the lack of transparency that the prior strategy/model and management followed, which appears to be deeply rooted in over-earning in its Argentina business, focusing on short-term outcomes/deferred investments to routinely make numbers, and perpetuating aggressive pricing, leading to client frustration and possible defection, the analyst tells investors in a research note.