TD Cowen lifts FIS stock rating, raises price target to $92

On Monday, TD Cowen analyst Bryan Bergin upgraded Fidelity National Information Services (NYSE:FIS) stock from Hold to Buy, setting a new price target of $92.00, up from the previous $80.00. This adjustment reflects a positive outlook for the company as it transitions its business model. According to InvestingPro data, FIS currently trades at $74.58, with analysts’ targets ranging from $66 to $113, suggesting potential upside. The company maintains a perfect Piotroski Score of 9, indicating strong financial health.

Bergin’s upgrade is based on strategic changes within Fidelity National Information Services, which involve trading a cyclical asset for a more insulated one. The company has shifted focus by divesting from Worldpay, a payment processing service, to emphasize its Issuer Solutions segment. This move is intended to simplify the business structure and increase transparency. With revenue of $10.13 billion in the last twelve months and a healthy gross profit margin of 37.56%, FIS demonstrates solid fundamental performance.

The strategic shift is expected to enhance Fidelity National Information Services’ financial profile by increasing the mix of recurring revenue, improving profit margins, and contributing to free cash flow (FCF). Bergin noted that this realignment of the company’s portfolio positions FIS to better withstand macroeconomic volatility.

Following a period of execution challenges, Bergin highlighted that Fidelity National Information Services has demonstrated improved performance in the first quarter. The analyst’s commentary underscores a restored confidence in the company’s operational capabilities, suggesting that FIS is now on a more solid footing.

The upgrade and price target increase signal analyst confidence in Fidelity National Information Services’ current strategy and its potential to deliver shareholder value. The new price target of $92.00 represents a notable increase from the previous target, indicating a bullish stance on the stock’s prospects.

In other recent news, Fidelity National Information Services, Inc. (FIS) has announced significant financial moves, including the acquisition of Global Payments (NYSE:GPN), Inc.’s Issuer Solutions business for $13.5 billion and the divestiture of its 45% stake in Worldpay for $24.25 billion. Fitch Ratings has revised FIS’s outlook to stable, maintaining its ’BBB’ rating, due to the heightened risks associated with these large-scale transactions. The acquisition is expected to increase FIS’s revenue and EBITDA by approximately 25%, enhancing its card processing business. Additionally, Mizuho (NYSE:MFG) Securities has adjusted its price target for FIS to $85 from $104, while maintaining an Outperform rating, noting a modest increase in Banking growth and a gradual start to 2025.

FIS has also announced changes in its board, with Lee Adrean stepping down and Nicole Anasenes appointed as the new Chair of the Audit Committee. The company has introduced an AI-driven tool, Treasury GPT, developed with Microsoft (NASDAQ:MSFT), to improve treasury management efficiency. This tool recently won the "Best Solution Innovation in AI" award at the 2025 Treasury Management International Awards for Innovation & Excellence. As part of its ongoing collaboration with Microsoft, FIS is migrating its Integrity platform to Microsoft Azure to enhance scalability and performance.

These developments indicate FIS’s strategic focus on streamlining operations and leveraging technology for growth. The company’s commitment to maintaining strong investment-grade ratings and reducing leverage is evident in its strategic financial decisions. As the transactions progress, market participants will closely monitor the integration process and any updates on FIS’s financial performance.

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