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Investing.com - RBC Capital has lowered its price target on Fiserv (NYSE:FI) to $178.00 from $237.00 while maintaining an Outperform rating following the company’s second-quarter 2025 results. The stock, currently trading at $140.39, has seen a sharp 14.5% decline over the past week, with InvestingPro data showing the RSI indicating oversold territory.
The significant price target reduction comes as Fiserv issued lower organic growth guidance coupled with reduced margin guidance for the remainder of 2025, according to RBC Capital.
Despite the negative market reaction, which RBC describes as "overdone" and "overcooked relative to the results & guidance," the firm maintains its positive outlook on the payment processing company.
RBC Capital notes that Fiserv management expects Clover volumes to accelerate sequentially in the second half of 2025, driven by easier comparisons, geographic expansion, and go-to-market initiatives.
The analyst firm also points out that this represents the first quarter under Fiserv’s new CEO, suggesting the guidance adjustments are "prudent" given the leadership transition.
In other recent news, Fiserv Inc . announced its second-quarter 2025 earnings, with adjusted earnings per share (EPS) of $2.47, surpassing analyst expectations of $2.43. The company’s revenue also exceeded forecasts, reaching $5.52 billion compared to the anticipated $5.2 billion. Despite these strong financial results, Fiserv’s stock experienced a decline due to broader market concerns and specific challenges discussed during their earnings call. Following these developments, Stephens lowered its price target for Fiserv to $180, maintaining an Overweight rating, due to reduced revenue guidance. This adjustment came after Fiserv revised its fiscal year 2025 organic revenue growth forecast from 10%-12% to 10%.
Additionally, BTIG also reduced its price target for Fiserv to $200, while keeping a Buy rating, citing slower-than-expected product rollouts and extended bank-tech sales cycles. Fiserv has adjusted its revenue guidance across several segments, with Merchant Solutions and Financial Solutions both projecting growth at the lower end of their previous ranges. These recent developments highlight the challenges Fiserv is navigating in the current market environment.
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