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Mizuho (NYSE:MFG) lowered its price target on Fiserv stock (NYSE:FI) to $194.00 from $200.00 on Tuesday, while maintaining an Outperform rating on the financial technology company. Currently trading at $163.47, with a market capitalization of $90.79 billion, InvestingPro analysis suggests the stock is currently undervalued.
The price target reduction reflects Mizuho’s decreased expectations for Fiserv’s Clover payment processing platform, with second-quarter volume growth estimates now projected at 8% compared to the previous 9% forecast.
For the full year 2025, Mizuho has revised its Clover growth estimate downward to 9% from 11% previously, though this still represents low double-digit percentage growth excluding gateway conversions.
Mizuho noted that 2025 remains "a 2H-loaded year" for Fiserv, with second-quarter performance expected to closely resemble first-quarter results.
Despite the tempered near-term outlook, Mizuho expressed continued confidence in Fiserv management’s ability to achieve its growth targets, with the revised projections still aligning with the company’s previous guidance.
In other recent news, Fiserv announced its intention to acquire the remaining 49.9% stake in AIB Merchant Services. This move aims to bolster growth in Ireland and the broader European market, though the financial details of the transaction have not been disclosed. Completion is contingent upon regulatory approvals, with the deal expected to finalize in the third quarter. Additionally, Fiserv has entered a strategic partnership with U.S. Bank to enhance its Credit Choice solution, integrating new capabilities to offer a streamlined user experience for cardholders. This initiative is set to be fully implemented by the end of 2025.
In terms of analyst ratings, Jefferies has maintained a Hold rating on Fiserv stock with a price target of $165, reflecting their current outlook on the company’s market position. UBS analysts, however, reiterated a Buy rating with a higher price target of $225, based on Fiserv’s growth strategy and projected revenue of $4.5 billion by 2026. The UBS analysis highlights the need for faster growth in Gross Payment Volume or a combination of strategic factors to meet these revenue goals. These developments indicate Fiserv’s ongoing efforts to expand its market presence and enhance its service offerings.
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