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Investing.com - Keefe, Bruyette & Woods lowered its price target on Fiserv (NYSE:FI) to $170.00 from $200.00 on Friday, while maintaining an Outperform rating on the financial technology company.
The price target reduction follows Fiserv’s second-quarter 2025 earnings call, where management discussed factors behind weaker 2025 guidance, primarily driven by challenges in the Merchant segment and macroeconomic concerns.
Fiserv shares fell over 18% following the guidance adjustment, with InvestingPro data showing a steep 15.5% decline in the past week and a 32.9% drop over six months. The RSI indicates the stock is now in oversold territory, reflecting investor disappointment with the outlook change and weaker performance in the Merchant segment.
KBW noted that Fiserv will likely become a multi-quarter "show me" story rather than a shorter-term one, with few imminent catalysts for the shares, causing the stock to move lower in the firm’s priority ranking.
Despite these challenges, KBW highlighted that Clover metrics performed in line with expectations, and headwinds affecting the company this year should become tailwinds for 2026. Trading at a P/E of 23.5x, with analyst targets ranging from $125 to $250, the current discounted valuation makes shares attractive for long-term investors. Get access to 10+ additional exclusive ProTips and comprehensive analysis with InvestingPro.
In other recent news, Fiserv has experienced a series of adjustments to its stock price targets following its latest earnings report. KeyBanc has lowered its price target to $200, maintaining an Overweight rating, due to concerns about growth and reduced margin expansion projections. Similarly, TD Cowen cut its price target to $188, citing a disappointing second-quarter earnings report with lower organic growth and operating margin targets for 2025. RBC Capital has also reduced its price target significantly to $178, reflecting Fiserv’s lower guidance on organic growth and margins for the rest of 2025.
Stephens adjusted its price target to $180, noting that Fiserv’s second-quarter results met expectations but were overshadowed by reduced revenue guidance for the fiscal year. BTIG has also lowered its price target to $200, pointing to slower product rollouts and extended sales cycles in the bank-tech sector. Across these analyses, Fiserv’s revenue guidance has been revised downward, with Merchant Solutions and Financial Solutions growth now expected at the lower end of previous forecasts. These developments highlight ongoing concerns about Fiserv’s growth prospects and financial performance.
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