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Investing.com - William Blair maintained its Outperform rating on Fiserv (NYSE:FI), a $93 billion market cap financial technology leader, Monday following the company’s stablecoin announcements. According to InvestingPro data, the company generates over $20.7 billion in annual revenue and maintains a GOOD financial health score.
The firm expects the initial rally in Fiserv shares to fade as investors fully process the implications of the stablecoin initiatives, including the launch of FIUSD, the company’s own stablecoin.
William Blair noted that Fiserv is taking aggressive steps to counter potential risks that stablecoins could pose to its financial institution customers’ deposit bases, which could impact growth.
The research firm expressed bullish sentiment on USDC as a vehicle for cross-border and potentially domestic commerce and tokenized deposits, while suggesting that individual stablecoins have limited value.
William Blair believes the stablecoin ecosystem will require time to develop, likely forcing early participants like Fiserv to adjust their strategies as the market evolves, but views the company’s stablecoin launch as a move to maintain flexibility rather than a negative development.
In other recent news, Fiserv announced plans to launch a new digital asset platform, including a stablecoin called FIUSD, by the end of 2025. This platform will help regional and community banks implement stablecoin technology, with Fiserv charging transaction fees and taking a portion of yield earned on reserves. Fiserv also disclosed an expanded partnership with PayPal (NASDAQ:PYPL) to integrate FIUSD and PayPal’s PYUSD into cross-border transactions, payouts, and merchant solutions. Additionally, Fiserv partnered with Early Warning Services to offer the Paze digital wallet, enhancing security through tokenization for a streamlined online checkout experience. BofA Securities reiterated a Buy rating on Fiserv stock, citing the company’s profit and loss algorithm as an attractive entry point. Meanwhile, Mizuho (NYSE:MFG) lowered its price target on Fiserv stock to $194.00 due to reduced growth expectations for the Clover payment processing platform. Despite this, Mizuho maintains an Outperform rating, expressing confidence in Fiserv’s management to achieve growth targets. Fiserv’s partnerships and initiatives reflect its commitment to driving innovation in financial services.
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