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Fiserv selloff on ‘Clover-related confusion and controversy’ overdone, says BofA

BofA believes Fiserv (FI) is “oversold on Clover-related confusion and controversy,” the analyst tells investors. Street communication on this topic has been poor since the Q1 report, which was exacerbated by management’s public comments yesterday, the firm added. Near-term, shares could “remain in the penalty box” and the firm cannot rule out some modest U.S. small-to-midsize business market share, but BofA does not believe Clover has suddenly become a “broken” asset and adds that there has now been better expectation-setting on volume growth. BofA maintains a Buy rating and $236 price target on Fiserv shares.

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