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Investing.com - KeyBanc has reduced its price target on Fiserv (NYSE:FI) to $200 from $250 while maintaining an Overweight rating on the financial technology company. The stock, currently trading at $140.08, has declined over 15% in the past week, according to InvestingPro data.
The adjustment follows Fiserv’s latest earnings report, which revealed a slowdown in growth across its business segments, including heightened scrutiny of its Clover payment platform, alongside reduced margin expansion projections for the year. The company maintains a solid gross profit margin of 61% and generated $5.2 billion in free cash flow over the last twelve months.
KeyBanc attributed the organic growth guidance revision to multiple small factors that collectively created approximately a 1% headwind compared to previous assumptions, while margin expansion fell short due to merger integration costs, increased sales and marketing expenditures, and lower overall growth.
The firm noted these developments have created uncertainty regarding Fiserv’s 2026 targets, including the $4.5 billion revenue projection for its Clover business unit.
Despite the disappointing outlook, KeyBanc maintained its Overweight rating, citing increased share repurchase activity as a positive factor and indicating it was not yet ready to forecast structurally lower growth for the company.
In other recent news, Fiserv reported its second-quarter 2025 earnings with an adjusted earnings per share (EPS) of $2.47, surpassing analyst expectations of $2.43. The company’s revenue reached $5.52 billion, exceeding the forecasted $5.2 billion. Despite these positive earnings results, several analyst firms have adjusted their price targets for Fiserv. TD Cowen lowered its price target to $188, citing disappointing earnings and reduced growth targets. RBC Capital also reduced its target to $178, pointing to lower organic growth and margin guidance. Stephens set its target at $180, noting that although results met expectations, full-year guidance was revised downward. BTIG adjusted its price target to $200 due to slower-than-expected product rollouts and extended sales cycles. These developments reflect a cautious outlook among analysts despite Fiserv’s earnings beat.
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