Bernstein sees FIS as ‘good candidate’ for potential activist involvement

Bernstein analyst Harshita Rawat believes FIS is a "good candidate for potential activist involvement." Despite valuation at 9.7-times 2023 price to earnings, many investors are reluctant to get involved in the stock given the post-pandemic history of negative revisions and guide-downs, the analyst notes. She sees value creation opportunity through divestiture of underwhelming merchant business, better company operation, better guidance management, and improved earnings quality. Rawat has a Market Perform rating and a price target of $70 on the shares.