The companies expect the integration of Bakkt into the Carat omnichannel ecosystem of Fiserv to aid businesses in exploring new options for B2B and B2C payouts, loyalty programs and transactions, with crypto assets accessible via a digital asset wallet.
Additionally, innovative consumer experiences will be provided by merchants, with the rolling out of new digital asset offerings, capable for their brand and customers. (See today’s best-performing stocks on TipRanks)
Carat, a trusted solution for businesses, includes fintechs that require access to a broad range of commerce-enabling capabilities, like the ability to accept and disburse funds, from a single provider.
Additionally, Fiserv and Bakkt plan to introduce Bakkt technology, which is likely to support consumers’ ability to buy, sell, and hold crypto assets to Fiserv financial institution clients.
CRO of Bakkt, Sheela Zemlin, said, “This partnership with Fiserv marks an important moment as we together create opportunities for consumers to seamlessly and at their own pace introduce digital assets into their daily habits.
“Whether it be buying bitcoin from within a financial institution’s app, redeeming loyalty points from their favorite restaurant for merchandise, using a digital asset wallet, or getting paid in bitcoin for their side gig grocery delivery runs, consumers will have new opportunities to participate in the digital economy.”
Jefferies analyst Trevor Williams recently maintained a Buy rating on Fiserv, but lowered his price target to $130 (17% upside potential) from $135.
Another analyst, William Blair’s Christopher Kennedy initiated coverage of Fiserv with a Buy rating, but did not assign a price target.
In a note to investors, Kennedy said that Fiserv’s diversified and global business is likely to benefit from “several long-term secular tailwinds.” These include a rise in consumption, electronic payments growth and digital transformation.
Consensus among analysts is a Strong Buy based on nine Buys and one Hold. The average Fiserv price target of $143.22 implies 28.9% upside potential from current levels. Shares have gained 15% over the past year.
Additionally, Fiserv scores a 9 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.