Activist involvement at FIS doesn’t come as a surprise, says Wolfe Research

Wolfe Research analyst Darrin Peller tells investors in a research note that the announcement that FIS will undertake a strategic review and add a new director to its board after involvement from activists D.E. Shaw Group and Jana Partners does not come as a surprise, and is incrementally constructive on the potential efficacy in the boardroom. Peller, who made no change to the firm’s Peer Perform rating, would be favorable of portfolio optimization, including consideration of a sale of Capital Markets or pieces within Merchant, but is less optimistic on incremental cost initiatives, as he believes FIS’ margins are relatively healthy already.