TD Cowen analyst Bryan Bergin downgraded the rating on Fiserv to a Hold today, setting a price target of $80.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Bryan Bergin has given his Hold rating due to a combination of factors that reflect concerns over Fiserv’s recent performance and strategic direction. The company has experienced a surprising slowdown in business, prompting a downgrade from a previous Buy rating. This slowdown, coupled with leadership changes and a new remediation plan, raises questions about the company’s ability to recover swiftly. The shift in corporate culture aimed at addressing a prior short-term focus could lead to increased churn and execution risks, which may not be fully accounted for in the current share price.
Bergin also notes that the company’s key growth drivers have been undermined, and the stock is likely to remain under pressure until new leadership can potentially reverse the performance decline. The recent financial guidance cuts and the magnitude of the third-quarter miss have been unexpected, casting doubt on the sustainability of past strategic deals. While Fiserv’s assets are strong, the realignment of strategy is expected to bring volatility, and it may take time for investor sentiment to rebuild. As a result, Bergin has significantly reduced his financial models and price target for Fiserv, reflecting a cautious outlook for the company’s near-term prospects.
Bergin covers the Technology sector, focusing on stocks such as Accenture, Block, and Genpact. According to TipRanks, Bergin has an average return of -0.7% and a 43.65% success rate on recommended stocks.
In another report released today, BTIG also downgraded the stock to a Hold with a $180.00 price target.