In a report released today, James Faucette from Morgan Stanley maintained a Buy rating on Fiserv, with a price target of $266.00.
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James Faucette has given his Buy rating due to a combination of factors that suggest potential upside for Fiserv’s stock. Despite investor concerns about Clover’s volume growth and the heavily weighted second-half outlook, Faucette sees opportunities for Fiserv to outperform expectations. The current valuation at 14 times P/E is attractive to bullish investors, who believe that even modest outperformance in Clover’s volume growth could lead to a significant upward rerating of the stock.
Additionally, Faucette notes that the concerns about slower growth and revenue targets are likely already reflected in the stock price, limiting downside risk. There is also potential for Fiserv to gain market share in Financial Solutions, leveraging its historical strengths and capitalizing on integration challenges faced by competitors like FIS and GPN. These factors collectively contribute to Faucette’s optimistic outlook on Fiserv’s ability to meet its financial year targets and drive shareholder value.
In another report released on July 17, Truist Financial also maintained a Buy rating on the stock with a $185.00 price target.