Fiserv (NYSE: NYSE:FI) saw its price target increased by TD Cowen to $230.00, up from the previous target of $200.00, while the firm kept a Hold rating on the stock.
The adjustment comes as the company demonstrates strong performance through numerous product innovations and cross-selling initiatives across its platform.
TD Cowen noted Fiserv's continued strength in its Merchant services and the expected rise in Financial Solutions as critical factors for maintaining momentum. According to the firm, the company's visible successes are likely to support this trajectory.
The commentary highlighted Fiserv's position as a straightforward choice for investors within the payment sector, emphasizing its consistent low double-digit organic revenue growth coupled with mid-teen earnings per share expansion.
The analyst's statement underscored Fiserv's solid execution across its product offerings and strategic initiatives. The company's ability to innovate and effectively cross-sell on its platform has been significant in driving its performance. The analyst expressed confidence in Fiserv's potential to sustain its growth, citing the importance of Merchant services and Financial Solutions in this effort.
Fiserv's status in the industry was reinforced, with TD Cowen describing it as "the easiest name to own in payments." This sentiment is backed by the company's track record of delivering organic revenue growth and earnings per share increases.
In other recent news, Fiserv has been experiencing significant developments. Financial analysts at RBC Capital, Wells Fargo, Baird, Jefferies, and CFRA have all adjusted their outlooks on Fiserv, with RBC Capital raising its price target to $224 and CFRA upgrading Fiserv's status from Buy to Strong Buy, raising the price target to $235. These adjustments come after Fiserv's strong financial performance in the third quarter, revealing a 17% year-over-year increase in adjusted earnings per share (EPS) to $2.30, and a 7% growth in adjusted revenue to $4.9 billion.
Fiserv has also raised its guidance for the fiscal year 2024, which includes organic growth of 16-17%, adjusted revenue growth of 7-8%, and adjusted EPS of $8.73-8.80. This is mainly due to the Merchant Solutions segment displaying a remarkable 24% organic revenue growth.
In addition to these financial developments, Fiserv has announced new initiatives such as a partnership with DoorDash (NASDAQ:DASH), a proof of concept with Walmart (NYSE:WMT), and the expansion of its Clover offerings.
InvestingPro Insights
Fiserv's recent performance aligns with TD Cowen's positive outlook, as evidenced by InvestingPro data. The company's market capitalization stands at an impressive $114.96 billion, reflecting its significant presence in the Financial Services industry. Fiserv's revenue growth of 6.99% over the last twelve months as of Q3 2024 supports the analyst's observation of consistent low double-digit organic revenue growth.
InvestingPro Tips highlight Fiserv's strong market position, noting it as a "Prominent player in the Financial Services industry." This aligns with TD Cowen's description of Fiserv as "the easiest name to own in payments." Additionally, the company's "High return over the last year" is corroborated by the remarkable 82.16% price total return over the past year.
It's worth noting that Fiserv is currently trading near its 52-week high, with its price at 99.9% of the 52-week high. This data point supports TD Cowen's decision to raise the price target, reflecting the company's strong performance and market confidence.
For investors seeking a deeper understanding of Fiserv's potential, InvestingPro offers 12 additional tips, providing a comprehensive analysis of the company's financial health and market position.
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