Eos Energy stock falls after Fuzzy Panda issues short report
Investing.com - Goldman Sachs downgraded Fiserv (NYSE:FI) from Buy to Neutral and slashed its price target to $79.00 from $149.00 following a significant reset in company expectations. The stock has plummeted 43% over the past week, now trading at $70.60, far below its 52-week high of $238.59.
The financial services company lowered its 2026 earnings per share guidance by approximately 30%, a reduction that exceeded Goldman Sachs’ expectations despite anticipating a reset quarter. This development has prompted seven analysts to revise their earnings forecasts downward, according to InvestingPro data.
Goldman Sachs noted that new management identified several areas where the business had previously prioritized short-term revenue growth strategies that conflicted with a client-first approach.
The downgrade reflects concerns about Fiserv’s plan to reverse several aggressive pricing actions from recent years and address previously undisclosed one-time revenue impacts, resulting in guidance for essentially flat revenue over the next nine months.
Goldman Sachs believes investor sentiment will remain negative until Fiserv demonstrates top-line reacceleration and a path back to double-digit EPS growth.
In other recent news, Fiserv has faced a series of downgrades from multiple research firms following its latest financial results and outlook adjustments. Wolfe Research downgraded Fiserv to Peerperform from Outperform after the company reported its third-quarter results and reduced its fiscal year 2025 guidance, citing structural concerns. William Blair also downgraded Fiserv to Market Perform, pointing to a significant miss in third-quarter revenue and earnings per share, along with abrupt management changes. Similarly, BTIG downgraded the company to Neutral, highlighting a halved growth outlook and ongoing management transitions.
TD Cowen downgraded Fiserv from Buy to Hold, reducing its price target significantly due to what it described as a "baffling" business slowdown. Jefferies maintained a Hold rating, expressing concerns over Fiserv’s focus on short-term initiatives. These developments underscore the challenges Fiserv faces as it navigates leadership changes and adjusts its strategic focus.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.