EU and US could reach trade deal this weekend - Reuters
On Monday, UBS analysts reiterated their Buy rating for Fiserv (NYSE: NYSE:FI) stock, maintaining a price target of $225. According to InvestingPro data, analyst targets range from $145 to $268, with the stock currently trading at $160.45. Based on InvestingPro’s Fair Value analysis, the stock appears undervalued. The assessment follows a detailed analysis of Fiserv’s Clover growth strategy, emphasizing the revenue and gross payment volume (GPV) components necessary to achieve a projected $4.5 billion in revenue by 2026. The company currently generates $20.7 billion in annual revenue with a healthy gross profit margin of 61%. InvestingPro analysis reveals 10+ additional insights about Fiserv’s growth potential and financial health.
The analysis suggests that reaching the $4.5 billion revenue target will require either faster GPV growth than the current base case of approximately 13% for 2026 or a combination of factors. These include continued strong contributions from Clover Capital, the expansion of Clover Argentina, increased direct mix, and pricing benefits. The company has demonstrated strong execution historically, maintaining a 15% revenue CAGR over the past five years.
UBS analysts noted that while growth beyond 2026 is expected to slow, several factors will continue to support growth. These include backbook conversion, five new country launches expanding Fiserv’s international presence to 14 markets, and partnerships with companies like ADP.
The report highlights that these international expansions, along with the recent launches and Belgium’s addition, could contribute approximately $2 trillion in card volume in these markets, compared to around $12 trillion in the U.S.
For further insights, UBS offers an Excel analysis of the revenue and GPV components required for Fiserv’s growth strategy, available upon request.
In other recent news, Fiserv has been the focus of several analyst assessments and company developments. Truist Securities initiated coverage on Fiserv with a Buy rating, setting a price target of $181, while noting the company’s ambitious revenue growth forecast amidst challenging macroeconomic conditions. Tigress Financial Partners maintained a Buy rating and raised their price target to $250, citing Fiserv’s strong position in the global payments sector and potential for revenue and cash flow growth. Meanwhile, Keefe, Bruyette & Woods adjusted their price target down to $200 from $240, maintaining an Outperform rating, and suggested the market has undervalued Fiserv’s stock due to a slowdown in Clover’s volume growth. William Blair reiterated an Outperform rating, emphasizing Clover’s success in the U.S. SMB market and its international expansion. Additionally, Fiserv’s shareholders approved executive compensation and elected ten directors at the recent annual meeting, reflecting strong shareholder consensus. The appointment of Deloitte & Touche LLP as the independent registered public accounting firm was also ratified. A shareholder proposal for amendments to the company’s Compensation Recoupment Policy was rejected. These developments highlight ongoing strategic and operational shifts within Fiserv as it navigates the financial technology landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.