Oppenheimer upgrades FIS on more stable model post deals

Oppenheimer upgraded FIS (FIS) to Outperform from Perform with a $94 price target offering 22% upside potential. The firm likes FIS’s announced acquisition of Issuer Solutions, which it believes strengthens the company’s offerings to banks, complements its debit processing capabilities, and expands its recurring revenue stream. Meanwhile, FIS eliminated the volatility tied to merchant acquiring through the sale of Worldpay, the analyst tells investors in a research note. Oppenheimer believes the transactions represent a shift toward a more stable and predictable revenue model for FIS, at a time when fintech investors seek defensive business models.