Fiserv stock price target lowered to $200 by BTIG on slower rollouts

Investing.com - BTIG has lowered its price target on Fiserv (NYSE:FI) to $200.00 from $215.00 while maintaining a Buy rating, citing slower-than-expected product rollouts and extended bank-tech sales cycles. The stock, currently trading at $140.24, has seen a significant 19.6% decline over the past six months, according to InvestingPro data, though analysis suggests the stock may be undervalued at current levels.

The financial technology company reduced its revenue guidance across multiple segments, with Merchant Solutions fiscal year 2025 organic growth now expected at the low end of its previous 12% to 15% outlook. Financial Solutions organic growth is similarly projected at the lower end of its prior 6% to 8% range. Despite the guidance reduction, InvestingPro data shows Fiserv maintains strong fundamentals with a 61% gross profit margin and healthy revenue of $20.7 billion over the last twelve months.

Despite the revenue guidance reduction, Fiserv reported several positive developments in its second-quarter 2025 results. Clover revenue growth accelerated to 30% from 27% in the first quarter, and the company raised its fiscal year 2025 adjusted earnings per share guidance at the mid-point.

Fiserv also increased its share repurchase outlook to 130% of free cash flow during fiscal year 2025, up from the previous 110% target. The company’s second-quarter adjusted earnings per share came in ahead of Wall Street expectations.

BTIG noted concerns about the 2% year-over-year decline in second-quarter Merchant Solutions operating margin, which it attributed to tough comparisons and acquisition impacts, as well as the implied acceleration needed in the second half of 2025 to meet the revised guidance.

In other recent news, Fiserv Inc . reported its second-quarter 2025 earnings, surpassing expectations with an adjusted earnings per share (EPS) of $2.47, compared to the anticipated $2.43. The company’s revenue also exceeded forecasts, reaching $5.52 billion against the projected $5.2 billion. Despite these positive financial results, Fiserv’s stock experienced a notable decline in premarket trading. This drop is attributed to broader market concerns and specific challenges discussed during the earnings call. Analysts have not provided any upgrades or downgrades following the earnings report. These developments reflect the current state of the company as it navigates its financial landscape.

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