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On Monday, Jefferies analysts maintained a Hold rating on Fiserv (NYSE:FI) stock, keeping the price target at $165.00. The decision comes as the company’s small and medium-sized business (SMB) index showed a slight deceleration in its recent performance metrics. According to InvestingPro data, Fiserv currently trades at $162.01, with analysis suggesting the stock is slightly undervalued based on its Fair Value assessment.
The SMB index for Fiserv, listed on the New York Stock Exchange under the ticker NYSE: FI, experienced a slowdown of 1 percentage point compared to April. However, when accounting for the Easter holiday’s impact in April, the index remained stable. Notably, the restaurant sector within the index showed a 2 percentage point acceleration, outperforming typical month-over-month trends by 4 percentage points. With a market capitalization of $89.85 billion and revenue growth of 6.56% over the last twelve months, Fiserv maintains its position as a significant player in the financial services sector.
Conversely, the retail sector in the index saw a decrease of approximately 1.5 percentage points, underperforming usual month-over-month patterns by 1 percentage point. The overall deceleration in the index was mainly attributed to smaller categories such as education, information, construction, and manufacturing sectors.
Quarter-to-date, the index is tracking a 1 percentage point deceleration from the first quarter, or a 2 percentage point deceleration when excluding the Leap Year effect. Despite these fluctuations, Jefferies analysts remain steady in their assessment of Fiserv’s market position.
In other recent news, several analysts have provided their insights on Fiserv’s financial outlook and strategic positioning. UBS analysts have maintained a Buy rating with a $225 price target, emphasizing the importance of Fiserv’s Clover growth strategy, which aims to achieve $4.5 billion in revenue by 2026. They highlight international expansion and partnerships as key contributors to future growth. Truist Securities also initiated coverage with a Buy rating, setting a price target of $181, while noting that the current revenue growth forecast of 10-12% might be ambitious due to economic conditions. Tigress Financial Partners raised their price target to $250, citing Fiserv’s strong position in the global payments sector and potential for revenue and cash flow growth. On the other hand, Keefe, Bruyette & Woods lowered their price target to $200, maintaining an Outperform rating, following a slowdown in Clover’s volume growth. William Blair reiterated an Outperform rating, highlighting Clover’s success in the U.S. SMB market and recent distribution deals as positive developments. These recent developments reflect varied analyst perspectives on Fiserv’s growth prospects and strategic initiatives.
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