/Fiserv%2C%20Inc_%20logo%20on%20phone-by%20rafapress%20via%20Shutterstock.jpg)
Milwaukee, Wisconsin-based Fiserv, Inc. (FI) provides payments and financial services technology services. Valued at $94.5 billion by market cap, FI is a leading provider of core processing and complementary services. Its solutions include transaction processing, electronic bill payment and presentation, business process outsourcing, document distribution services, and software and systems solutions.
Shares of this global technology leader have outperformed the broader market considerably over the past year. FI has gained 29.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 19.6%. In 2024, FI stock is up 21.6%, surpassing SPX’s 12% rise on a YTD basis.
Zooming in further, FI’s outperformance looks less pronounced compared to Vanguard Information Technology Index Fund ETF (VGT). The exchange-traded fund has gained about 25.7% over the past year. Moreover, FI’s gains on a YTD basis outshine the ETF’s 10.7% returns over the same time frame.
FI’s overall performance can be attributed to its robust client relationships and continued wins in the marketplace.
On Jul. 24, FI shares closed up more than 2% after reporting its Q2 results. Its adjusted EPS of $2.13 beat Wall Street expectations of $2.09. However, its adjusted revenue was $4.79 billion, falling short of Wall Street forecasts of $4.81 billion. FI affirmed its 2024 organic revenue growth outlook of 15% to 17% and raised full-year adjusted EPS, expecting it to be between $8.65 and $8.80.
For the current fiscal year, ending in December, analysts expect FI’s EPS to grow 16.1% to $8.73 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 35 analysts covering FI stock, the consensus rating is a “Strong Buy.” That’s based on 25 “Strong Buy” ratings, four “Moderate Buys,” and six “Holds.”
This configuration is more bullish than a month ago, with 24 analysts suggesting a “Strong Buy.”
On Jul. 29, Barclays PLC (BCS) analyst Ramsey El Assal maintained a “Buy” rating on Fiserv with a price target of $185, implying a potential upside of 14.5% from current levels.
The mean price target of $178.77 represents a 10.6% premium to FI’s current price levels. The Street-high price target of $200 suggests an upside potential of 23.8%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
