Fiserv Stock Outlook: Is Wall Street Bullish or Bearish?

Milwaukee, Wisconsin-based Fiserv, Inc. (FI) provides payments and financial technology services. It operates through Merchant Acceptance, Financial Technology, and Payments and Network segments. With a market cap of around $120 billion, Fiserv's operations span the Americas, Europe, the Middle East, Africa, and the Indo-Pacific.

The fintech giant has significantly outperformed the broader market over the past year. Fiserv stock prices have soared 58.7% on a YTD basis and 72.6% over the past year, outpacing the S&P 500 Index’s ($SPX) rally of 24.7% in 2024 and 32.3% over the past 52 weeks.

Narrowing the focus, Fiserv has also outperformed the Global X FinTech ETF’s (FINX) surge of 25.6% in 2024 and 54.5% over the past 52-week period.

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Shares of Fiserv rose 1.3% after the release of its better-than-expected Q3 earnings on Oct. 22. The company reported a robust 15% year-over-year growth in organic revenues, primarily driven by the impressive strength of its merchant solutions segment. Fiserv’s overall revenues grew 7% year-over-year to $5.2 billion, while its product revenues grew by a remarkable 13.1% year-over-year to $978 million.

Meanwhile, Fiserv has also reported robust growth in profitability, with its adjusted EPS increasing 17.3% year-over-year to $2.30 and surpassing analysts’ bottom-line estimates by a notable 2.2%, bolstering investors’ confidence.

For the current fiscal, ending in December, analysts expect Fiserv to report a 16.6% year-over-year growth in adjusted EPS to $8.77. Moreover, the company has a robust earnings surprise history. It has surpassed analysts’ bottom-line estimates in the past four quarters.

FI stock has a consensus “Strong Buy” rating overall. Out of the 36 analysts covering the stock, 26 recommend a “Strong Buy,” four advise “Moderate Buy,” and six suggest a “Hold” rating.

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This configuration is slightly more bullish than three months ago when 25 analysts recommended “Strong Buy” ratings.

On Oct. 29, Tigress Financial analyst Ivan Feinseth maintained a “Buy” rating on FI while raising the price target to $244 - the Street-high price target. This suggests a potential upside of 15.7%.

Fiserv’s mean price target of $216.18 represents a premium of only 2.5% to current price levels. 

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On the date of publication, Aditya Sarawgi 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.