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Investing.com - Argus downgraded Fiserv (NYSE:FI) from Buy to Hold on Thursday following the company’s significant third-quarter earnings miss and reduced 2025 guidance. The financial services technology company’s stock has plummeted 43% in the past week alone, now trading at $67.36, just slightly above its 52-week low of $66.58.
The financial services technology company’s downgrade comes after what Argus described as badly missed third-quarter EPS expectations, with Fiserv acknowledging that growth and margin targets need to be reset.
Argus cited management’s admission that previous decisions to defer investments in the business had limited Fiserv’s ability to execute product launches, creating execution challenges that now require attention.
The research firm expressed disappointment in Fiserv’s prior short-term focus on margins, suggesting that "considerable confidence will need to be rebuilt in the company’s growth story before the shares can recover." This comes as InvestingPro data shows seven analysts have revised their earnings downward for the upcoming period, despite the company’s revenue growth of 6.73% over the last twelve months.
Fiserv attributed its recent weakness to current conditions in Argentina, recalibration of assumptions in its original guidance, necessary investments, and what it called "the de-prioritization of short-term initiatives." Despite the 62% price decline over the past six months, InvestingPro analysis indicates the stock appears significantly undervalued based on Fair Value metrics. Investors seeking deeper insights can access the comprehensive Pro Research Report, available for Fiserv and 1,400+ other US equities.
In other recent news, Fiserv has been the focus of several significant analyst actions following its third-quarter earnings report. The company missed its earnings projections, prompting Bernstein to downgrade Fiserv from Outperform to Market Perform and drastically reduce its price target from $205.00 to $80.00. This move was due to concerns about the visibility into Fiserv’s business operations and the health of its financial solutions segment. Similarly, Morgan Stanley downgraded Fiserv from Overweight to Equalweight, cutting the price target to $81.00 from $179.00, citing a strategic overhaul announced by the new management team.
Goldman Sachs also downgraded Fiserv to Neutral from Buy, lowering the price target to $79.00 from $149.00 after the company’s earnings reset, which included a 30% reduction in its 2026 earnings per share guidance. Seaport Global Securities followed suit, downgrading Fiserv to Neutral from Buy due to the earnings miss and reduced guidance. Additionally, Keefe, Bruyette & Woods maintained an Outperform rating but significantly slashed its price target from $170.00 to $92.00. These downgrades and price target reductions reflect the analysts’ reactions to Fiserv’s recent performance and strategic changes.
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