Jefferies maintains Hold rating on Fiserv stock with $165 price target

On Thursday, Jefferies analysts reaffirmed a Hold rating for Fiserv stock (NYSE: NYSE:FI) with a price target of $165, aligning with broader market sentiment. According to InvestingPro data, the $91 billion market cap company currently trades at $164.16, with analyst targets ranging from $145 to $268. This decision follows discussions with several Independent (LON:IOG) Sales Organizations (ISOs) at a regional merchant acquiring conference this week.

The analysts’ conversations aimed to understand changes in Clover’s Gross Payment Volume (GPV) trajectory against the backdrop of Fiserv’s 6.56% revenue growth over the last twelve months. They noted no single common theme among the ISOs. While some ISOs reported business as usual, others mentioned pricing-driven churn, attributing it to Clover’s recent aggressive pricing strategies.

Additionally, some ISOs have been reducing front-book placements, opting for processor-agnostic solutions instead. However, this trend was not widespread across the board, according to the analysts.

The reaffirmed Hold rating and price target reflect Jefferies’ current outlook on Fiserv’s market position and strategic adjustments.

In other recent news, Fiserv has been the subject of several analyst assessments and market analyses. UBS analysts maintained a Buy rating with a $225 price target, emphasizing Fiserv’s Clover growth strategy and its potential to achieve $4.5 billion in revenue by 2026. Tigress Financial Partners also maintained a Buy rating, raising their price target to $250, highlighting Fiserv’s strong position in the global payments sector and its potential for continued revenue growth. On the other hand, Keefe, Bruyette & Woods (KBW) adjusted their outlook, lowering the price target to $200 while maintaining an Outperform rating, citing a slowdown in Clover’s volume growth as a concern.

Jefferies analysts maintained a Hold rating with a $165 price target, noting a slight deceleration in Fiserv’s small and medium-sized business index. Truist Securities initiated coverage with a Buy rating and a $181 price target, acknowledging the company’s challenges but seeing potential growth opportunities. Analysts from these firms point to Fiserv’s international expansions, strategic acquisitions, and innovations as key factors for future growth. Despite some concerns, analysts see Fiserv as well-positioned to capitalize on the ongoing digital payment transformation. Investors will be closely watching Fiserv’s upcoming financial results for further insights into its growth trajectory.

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