Fiserv stock retains Outperform rating, $240 target at KBW

Published 14/05/2025, 12:52
Fiserv stock retains Outperform rating, $240 target at KBW

On Wednesday, Keefe, Bruyette & Woods maintained a positive stance on Fiserv (NYSE:FI) shares, reiterating an Outperform rating and a price target of $240.00. The endorsement comes after a recent meeting with the company’s new CEO, Mike Lyons, and CFO Bob Hau, where they discussed the business’s current state and growth strategies.

During the sell-side dinner held on Tuesday, Fiserv’s management team expressed confidence in the growth prospects of their Clover payment system. They highlighted several encouraging signs, including a rebound in transaction volumes in Canada this April, which suggests a potential increase in activity for the next quarter.

Despite some remaining skepticism, the company’s leadership sees no issues with market share for Clover. Their focus remains on attracting new merchants and increasing revenue. The management’s optimism extends beyond Clover, as they believe Fiserv holds a strong position as a partner for banks, offering significant potential for sustained growth.

The new CEO’s positive outlook on Fiserv’s overall business is seen as justified, considering the company’s advantageous partnership with financial institutions. This relationship is expected to continue driving growth for the company.

The reiteration of the Outperform rating and the $240.00 price target indicates that Keefe, Bruyette & Woods sees Fiserv as well-positioned to capitalize on its opportunities and continue its growth trajectory under the new leadership.

In other recent news, Fiserv has announced significant leadership changes following the resignation of CEO Frank Bisignano, who has transitioned to a government role. Michael P. Lyons has been appointed as the new CEO and has joined the company’s board of directors, with Doyle R. Simons becoming the non-executive Chairman of the Board. Additionally, Fiserv and Paysafe (NYSE:PSFE) have expanded their partnership to enhance support for small and medium-sized businesses, introducing initiatives such as the integration of Fiserv’s Clover Capital solution and a digital wallet for the Clover merchant base. This collaboration aims to provide easier access to capital and improve security measures for merchants and consumers.

Furthermore, analyst firm TD Cowen has reiterated a Buy rating for Fiserv with a price target of $233, expressing confidence in the company’s growth opportunities and business model. Meanwhile, Mizuho (NYSE:MFG) has maintained an Outperform rating but reduced Fiserv’s price target from $259 to $220, citing mixed financial results and concerns over leadership transitions. Despite these challenges, Mizuho remains optimistic about Fiserv’s future, highlighting initiatives such as Value-Added Services and geographic expansion. These developments reflect Fiserv’s ongoing efforts to optimize its business strategy and maintain its position in the financial technology industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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