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Investing.com - Raymond (NSE:RYMD) James lowered its price target on Fidelity National Information Services (NYSE:FIS) to $88.00 from $95.00 on Tuesday, while maintaining an Outperform rating following the company’s mixed second-quarter results. The stock, currently trading at $72.22 with a market capitalization of $37.66 billion, appears undervalued according to InvestingPro analysis.
The financial services company reported a modest 1% top-line beat with adjusted earnings per share in line with expectations, though adjusted EBITDA margin performance disappointed analysts by remaining flat year-over-year versus expected 20 basis point growth. The company maintains a P/E ratio of 45.33, with revenue growing at 2.92% over the last twelve months.
Raymond James highlighted concerns about FIS’s third-quarter margin guidance, which projects approximately 60 basis points of expansion, significantly below market expectations of 150 basis points, leading the firm to lower its full-year margin outlook.
The price target reduction appears to have contributed to an 8% drop in FIS shares, with Raymond James suggesting the reaction stems primarily from intensifying investor concerns around competitive and pricing pressures facing the company.
Despite these challenges, Raymond James maintained its Outperform rating, noting that FIS’s full-year foreign exchange-adjusted organic revenue and adjusted earnings per share outlooks remained largely unchanged due to modest interest and tax rate tailwinds.
In other recent news, Fidelity National Information Services Inc. (FIS) reported its second-quarter 2025 earnings, which showed a slight miss on both earnings per share (EPS) and revenue forecasts. The company announced an EPS of $1.36, narrowly missing the forecasted $1.37. Revenue for the quarter reached $2.57 billion, just under the anticipated $2.58 billion. Despite these minor shortfalls, Fidelity National Information Services raised its full-year revenue guidance, indicating a positive outlook for the remainder of the year. These developments are part of the company’s recent activities.
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