TRUIST SECURITIES INITIATES COVERAGE ON FISERV STOCK WITH BUY RATING

On Monday, Truist Securities initiated coverage on Fiserv (NYSE:FI) stock, assigning it a Buy rating. The firm set a price target of $181.00 for the payment services company, aligning with broader analyst sentiment that shows a "Strong Buy" consensus and targets ranging from $145 to $268. The analyst at Truist Securities highlighted Fiserv’s position as a high-quality and well-scaled integrated payments business, supported by its "GOOD" InvestingPro Financial Health score.

The analyst expressed that Fiserv began the year with overly high expectations. It is anticipated that the company’s management might lower guidance in an upcoming earnings call, scheduled for July 29. The current forecast of 10-12% organic revenue growth is considered ambitious given the macroeconomic conditions, particularly as the company’s recent revenue growth was 6.6%. Truist Securities models high single-digit growth instead.

Despite these challenges, the analyst views Fiserv shares as attractive following a decline of over 20% year-to-date. The stock is seen as appealing on a growth-adjusted basis when compared to its peers, such as Fidelity National Information Services (NASDAQ:III) (NYSE: FIS) and Global Payments (NYSE: NYSE:GPN).

The coverage initiation by Truist Securities comes as Fiserv navigates a challenging economic environment while maintaining its strategic focus on integrated payment solutions. The firm’s positive outlook suggests potential growth opportunities for Fiserv relative to its industry counterparts.

In other recent news, Fiserv has been the focus of multiple analyst reviews and company developments. Tigress Financial Partners maintained a Buy rating on Fiserv shares, raising the 12-month price target to $250, highlighting the company’s strong position in global payments and financial technology. Conversely, Keefe, Bruyette & Woods (KBW) lowered their price target to $200, citing a slowdown in Clover’s volume growth, though they maintained an Outperform rating. William Blair also reiterated an Outperform rating, emphasizing Clover’s success in the U.S. small and medium-sized business market and noting a recent distribution deal with ADP as a positive development.

BTIG adjusted Fiserv’s price target to $215, maintaining a Buy rating, following comments from the company’s CFO about expected volume growth for Clover. Despite these mixed analyst perspectives, Fiserv’s management has expressed confidence in Clover’s underlying strength, attributing recent growth challenges to external factors like the timing of Easter and a challenging gateway conversion comparison. In corporate governance news, Fiserv shareholders approved executive compensation and elected ten directors at the annual meeting. Additionally, the appointment of Deloitte & Touche LLP as the independent registered public accounting firm was ratified. These developments come as Fiserv continues to navigate the competitive financial technology landscape.

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