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On Thursday, Tigress Financial Partners maintained a Buy rating on Fiserv (NYSE:FI) (NYSE:FISV) shares and increased the 12-month price target to $250. The firm highlighted Fiserv’s strong position in the global payments and financial technology sector, emphasizing the company’s potential for continued revenue and cash flow growth. With current revenue of $20.7 billion and a market capitalization of $88.76 billion, InvestingPro analysis indicates the stock is currently undervalued, supporting Tigress Financial’s view of a buying opportunity following the recent 27% price decline over the past six months.
The firm’s analysts pointed to Fiserv’s ongoing innovation, international expansion, and strategic acquisitions as key factors that will likely drive the company’s business performance. Improved operational efficiencies and the successful integration of acquisitions are expected to lead to margin expansion and higher Returns on Capital (ROC), ultimately accelerating shareholder value creation. The company maintains a healthy gross profit margin of 61% and demonstrates strong financial health, earning a "GOOD" rating from InvestingPro’s comprehensive analysis system, which evaluates over 100 financial metrics.
Clover, Fiserv’s payment management system, was identified as a central element of the company’s growth strategy. It is expected to generate robust revenue growth, expand into new markets, and strengthen relationships with small and medium-sized businesses (SMBs). The analysts believe that the increasing demand for services from SMBs presents significant cross-selling opportunities for Fiserv.
The firm also noted that Fiserv is well-positioned to benefit from the ongoing digital payment transformation. As digital transaction solutions continue to be adopted across various sectors, including financial, retail, enterprise, and consumer services, Fiserv is expected to capitalize on this trend.
Lastly, Tigress Financial underscored Fiserv’s strategic capital allocation, which is aimed at sustaining growth and enhancing shareholder value. Investments in new technologies, initiatives, and strategic acquisitions, coupled with ongoing share repurchases, were cited as evidence of the company’s commitment to driving shareholder returns. InvestingPro data reveals management’s aggressive share buyback program, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of Fiserv and 1,400+ other top US stocks.
In other recent news, Fiserv has been the focus of multiple analyst updates and investor activities. Mizuho (NYSE:MFG) Securities has adjusted its price target for Fiserv shares to $200 from $220, maintaining an Outperform rating. This revision follows Fiserv’s performance at a recent conference, where the company projected an 8% growth in Clover’s Gross Payment Volume for the second quarter, below Mizuho’s previous expectations. Similarly, BTIG has lowered its price target for Fiserv to $215 from $240, while retaining a Buy rating, citing Clover’s growth projections as a key factor. Keefe, Bruyette & Woods also reduced their price target for Fiserv to $200 from $240, but maintained an Outperform rating, suggesting the market has undervalued the stock.
Meanwhile, William Blair reiterated its Outperform rating on Fiserv, emphasizing the company’s strategic advantages and the potential for accelerated Clover volume growth in the latter half of the year. The firm highlighted recent distribution deals and international expansion as positive developments. In corporate governance news, Fiserv’s shareholders have approved executive compensation and elected ten directors at the recent annual meeting. Additionally, Deloitte & Touche LLP was ratified as the company’s independent registered public accounting firm for the year. These updates reflect ongoing interest and scrutiny from investors and analysts as Fiserv navigates its current market challenges.
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