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Investing.com - TD Cowen has reduced its price target on Fiserv (NYSE:FI) to $188.00 from $215.00 while maintaining a Buy rating on the financial technology company’s stock. The stock has experienced significant pressure, falling about 15% in the past week and over 31% in the last six months.
The price target adjustment follows what TD Cowen described as a "clearly disappointing" second-quarter earnings report from Fiserv, which included lower full-year 2025 organic growth and adjusted operating margin targets.
The financial services company’s performance issues were attributed to both internal and external factors, with TD Cowen noting that consecutive quarters of downside surprises have put Fiserv "squarely in the penalty box" with investors.
Despite the reduced price target, TD Cowen maintained its Buy rating, suggesting the "outsized stock pressure and depressed valuation do not give credit to differentiated assets and attractive mid-teens EPS growth" potential.
The research firm emphasized that "clean execution is critical" for Fiserv going forward, while acknowledging that a "multitude of initiatives exist" that could help the company improve its performance.
In other recent news, Fiserv reported its second-quarter 2025 earnings, with adjusted earnings per share (EPS) of $2.47, surpassing analyst expectations of $2.43. The company’s revenue reached $5.52 billion, exceeding the forecasted $5.2 billion. Despite these positive earnings results, Fiserv lowered its guidance for the remainder of 2025, impacting its stock price targets. RBC Capital reduced its price target for Fiserv to $178 from $237, citing lower organic growth and margin guidance. Stephens also lowered its price target to $180 from $240, following the company’s downward revisions to its full-year revenue growth forecast. BTIG adjusted its price target to $200 from $215, noting slower-than-expected product rollouts and extended sales cycles in the bank-tech sector. Fiserv’s fiscal year 2025 organic growth projections for Merchant Solutions and Financial Solutions are now expected at the lower end of previous ranges. These developments have led analysts to reassess their outlooks on the company’s future performance.
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