William Blair analyst Christopher Kennedy has reiterated their bullish stance on FIS stock, giving a Buy rating on April 23.
Christopher Kennedy has given his Buy rating due to a combination of factors including the attractive risk/reward profile of Fidelity National Information Services (FIS) and the strategic asset swap with Global Payments. Despite a slight decline in share price following the March-quarter results, FIS’s performance was in line with expectations, and the company has shown resilience with 81% of its revenue being recurring, which shields it from macroeconomic uncertainties.
Furthermore, the pending asset swap is anticipated to enhance FIS’s financial metrics, with the sale of Worldpay expected to be accretive to EBITDA margins and EPS, while also boosting free cash flow. The acquisition of Global Payments’ Issuer Solutions business is expected to drive synergies and bolster recurring revenues, particularly benefiting FIS’s Banking Solutions segment. These factors, coupled with favorable growth projections for the banking and capital markets segments, underpin Kennedy’s optimistic outlook on FIS.
According to TipRanks, Kennedy is an analyst with an average return of -3.6% and a 42.31% success rate. Kennedy covers the Technology sector, focusing on stocks such as Fidelity National Info, nCino, and Alkami Technology.
In another report released on April 23, Oppenheimer also upgraded the stock to a Buy with a $94.00 price target.