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Investing.com - Bernstein analyst Harshita Rawat has reiterated an Outperform rating and $205.00 price target on Fiserv (NYSE:FI), despite the stock’s 40% year-to-date decline. The stock is currently trading near its 52-week low of $117.84, though InvestingPro analysis suggests the company is undervalued at current levels.
The analyst acknowledged that sentiment remains "deeply negative" on Fiserv due to concerns about its Clover payment system, banking business, leadership changes, and potential guidance adjustments for both revenue and margins. Despite these concerns, the company maintains a GOOD Financial Health Score and has achieved 6.73% revenue growth over the last twelve months.
Rawat specifically addressed the Clover volume deceleration, noting that the slowdown (excluding Payeezy) coincided with broader deceleration in Visa’s card-present volumes and overall U.S. card volumes in late 2023, suggesting macroeconomic factors may be at play.
The analyst also pointed out that recent weakness might indicate a broader slowdown in certain restaurant categories, and that Clover volume growth is "less meaningful" compared to revenues due to channel mix considerations.
Bernstein’s analysis suggests that 3-5 percentage points of the revenue-volume delta could be explained simply by joint venture versus non-joint venture channel mix, with the firm expressing hope that Fiserv will disclose volume metrics and directional yields with and without joint ventures.
In other recent news, Fiserv, Inc. has announced a definitive agreement to acquire StoneCastle Cash Management. This strategic move is expected to enhance Fiserv’s ability to provide technology-enabled deposit solutions for financial institutions. Additionally, Fiserv is collaborating with North Dakota to launch the "Roughrider coin," a state-backed stablecoin, in 2026. This initiative will utilize Fiserv’s digital asset platform and is aimed at banks and credit unions in North Dakota.
Analysts have also shown confidence in Fiserv’s future prospects. TD Cowen reiterated its Buy rating for Fiserv, citing the company’s innovation and integration efforts, with a price target of $188. UBS similarly maintained a Buy rating with a $170 price target, highlighting Fiserv’s expansion into healthcare and the acquisition of StoneCastle Cash Management. Furthermore, Fiserv introduced Content Next, a cloud-based content management solution developed with OpenText, aimed at modernizing financial institutions’ operations through automation. These developments underscore Fiserv’s ongoing efforts to innovate and expand its service offerings.
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