On Tuesday, Seaport Global Securities analyst Jeff Cantwell upgraded Fiserv shares (NYSE:FI) from Neutral to Buy, setting a price target of $240.00. With a current market capitalization of $114.65 billion and a "GOOD" financial health rating according to InvestingPro, Fiserv stands as a prominent player in the Financial Services industry. Cantwell's upgrade is part of a broader revision of ratings and price targets as the firm updates its forecasts for the fourth quarter of 2025 and the full years of 2025 and 2026.
Cantwell stated that Fiserv's earnings power and stock have consistently demonstrated resilience across various macroeconomic conditions, a trait he considers increasingly valuable in 2025. This resilience is reflected in the company's impressive 47.19% return over the past year and strong revenue growth of 6.99%.
The analyst anticipates that Fiserv will benefit from the growth of U.S. small and medium-sized businesses (SMBs) and highlighted the company's upcoming Clover and international expansion plans in Brazil and Mexico as potential drivers for revenue and EPS above consensus expectations.
The revision also included upgrades and downgrades for other companies in the payments sector. Visa (NYSE:V) was upgraded to Buy from Neutral, favored over Mastercard (NYSE:MA), which was downgraded to Neutral from Buy. Cantwell cited Visa's more significant U.S. exposure and an anticipated Investor Day as catalysts for the company. Conversely, Mastercard's current valuation and its greater international exposure, which may limit revenue upside, led to its downgrade.
Flywire was downgraded to Neutral from Buy due to growing concerns about its operations in India and Canada and the potential impact of U.S.-China relations on its education payment corridors.
Seaport Global Securities also named Block and BILL as top picks for the year, citing their leverage to SMBs, reasonable valuations, and potential for revenue and EPS to surpass consensus.
In addition to these changes, Cantwell mentioned updates to numbers and price targets for other companies in the sector, including Shopify (NYSE:SHOP), PayPal (NASDAQ:PYPL), FIS, Global Payments (NYSE:GPN), Shift4 Payments (FOUR), ACI Worldwide (NASDAQ:ACIW), and Dave (DAVE). The adjustments reflect Seaport's effort to align with the evolving financial landscape and anticipated market trends for the upcoming years.
For deeper insights into Fiserv and its peers, InvestingPro subscribers can access comprehensive financial analysis, including 8 additional ProTips and a detailed Pro Research Report, helping investors make more informed decisions in this dynamic sector.
In other recent news, Fiserv has maintained its Outperform rating from Keefe, Bruyette & Woods, following the company's strategic acquisition of Payfare, a Canadian firm specializing in financial solutions for gig economy workers. The deal, worth approximately $140 million, is expected to strengthen Fiserv's offerings in embedded finance solutions. RBC Capital Markets has identified Fiserv as a potential beneficiary of the positive shift in sentiment among American small and medium-sized businesses, which is expected to boost technology investments.
Furthermore, Fiserv's CEO, Frank Bisignano, has been nominated by President-elect Donald Trump for the role of commissioner of the Social Security Administration, pending Senate confirmation. Analyst firms including BMO Capital Markets have increased their price targets for Fiserv, reflecting potential for upward revisions to estimates and valuation expansion.
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