Fiserv (FI) PT Raised to $200 at Deutsche Bank
Deutsche Bank analyst Bryan Keane raised the price target on Fiserv (NYSE: FI) to $200.00 (from $170.00) while maintaining a Buy rating.
The analyst comments "FI reported 2Q24 organic revenue growth of ~18% Y/Y, ~160bps of Y/Y margin expansion, and adj. EPS of $2.13, all slightly above DB/Street estimates. Clover continues to be FI’s crown jewel and the company is showing solid results in deepening value-added services (VAS) penetration, while organic growth in Financial Solutions accelerated to ~8% Y/Y (vs ~5% Y/Y last qtr.). On the macro front, even as FI called out that consumer spending decelerated throughout 2Q24, volumes in July have improved vs June levels and are consistent vs 2Q24 levels (a slight positive given V’s July MTD commentary). Further, the transitory benefit from inflation/interest in Argentina moderated more rapidly than expected while FX headwinds remain elevated (creating incremental headwinds to adj. revenue growth). Given the solid results and updated EPS guidance, we are raising our FY24E EPS by $0.03 to $8.68 and maintaining our FY25E/FY26E EPS. We are raising our TP to $200 due to resilient fundamentals. Buy."