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Investing.com - Truist Securities lowered its price target on Fiserv (NYSE:FI) to $170.00 from $185.00 on Tuesday, while maintaining a Buy rating on the financial technology company. According to InvestingPro data, the stock, currently trading at $142.10, appears undervalued based on its Fair Value analysis.
The price target reduction follows Fiserv’s second-quarter 2025 earnings report and reflects a lower price-to-earnings multiple of 15x on Truist’s 2026 adjusted earnings per share forecast, down from 16x previously.
Truist’s 2025 forecasts align with both Wall Street consensus and management guidance, while its 2026 earnings per share estimate sits approximately 2% above consensus, primarily due to expectations of a lower share count as management boosts its buyback program following recent share price weakness.
The firm identified Fiserv’s Clover business—a point-of-sale merchant platform serving small and medium-sized businesses—as the company’s "crown jewel," noting that investor perception of Fiserv’s quality often correlates with views on Clover’s growth profile.
Fiserv shares have declined 32% year-to-date, with Truist attributing 1% of the decline to negative earnings per share revisions and the remainder to multiple compression, following volume growth deceleration in Clover over recent quarters.
In other recent news, Fiserv has experienced several adjustments in analyst price targets following its latest earnings report. The company reported a second-quarter performance that led to lowered organic growth guidance to 10% from a previous 10-12% range. Analysts from Mizuho (NYSE:MFG), Bernstein, Keefe, Bruyette & Woods, KeyBanc, and TD Cowen have all revised their price targets downward. Mizuho adjusted its target to $165, citing concerns over Clover’s growth. Bernstein reduced its target to $205 due to revenue and margin misses, partly attributed to operations in Argentina. Keefe, Bruyette & Woods set a new target of $170, highlighting challenges in the Merchant segment and broader economic concerns. KeyBanc’s target is now $200, noting a slowdown in growth across Fiserv’s business segments. Lastly, TD Cowen lowered its target to $188, mentioning disappointing earnings and revised growth and margin expectations for 2025.
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