Anika Begay
Tigress Financial Partners on Tuesday revised its price target on Fiserv (NYSE:) (NYSE:FISV), a leading provider of financial services technology solutions, to $190.00 from the previous figure while reaffirming its Buy rating on the stock. The firm highlighted Fiserv’s continued growth, fueled by product innovation, expansion into international markets, and increased market share.
Fiserv reported a 7% year-over-year increase in second-quarter 2024 revenue, reaching a record $5.11 billion. This growth was largely attributed to the company’s integrated financial services solutions and strong customer relationships. Processing and services revenue increased 5.5% year-over-year to $4.14 billion, while product revenue jumped 16.2% to $967 million. Specifically, Merchant Solutions revenue grew 9%, up 28% organically, to $2.41 billion, and Financial Solutions revenue increased 6%, up 8% organically, to $2.37 billion.
The company’s successes are the result of strategic initiatives, including launching new products and services, entering new markets, and partnering with key customers. Fiserv has won numerous new customers across industries, including gasoline, gaming, government, and healthcare. Investments in technology, particularly data science and artificial intelligence, have enabled Fiserv to leverage transaction and account processing data to generate actionable insights.
Fiserv’s commitment to innovation is evident in its plans to introduce additional restaurant features for its Clover platform in the second half of the year, aiming to enhance casual dining with better table management, kitchen operations, inventory and cost management. The company also launched new banking features, such as an Apple (NASDAQ:) compatible installment loan feature, and introduced Clover Compact and Clover Flex (NASDAQ:) Pocket for smaller merchants.
The company’s growth trajectory is further supported by its strategic acquisitions, which broaden its product and service offerings. By focusing on new growth opportunities and operational efficiencies, Fiserv seeks to achieve accelerating business performance, increased return on capital, economic growth and increased shareholder value. In the most recent quarter, Fiserv repurchased 10 million shares for $1.5 billion and has returned more than $5 billion to shareholders through repurchases in the past year, for a total of $15 billion since its merger with First Data Corp. in 2019.
Tigress Financial Partners remains bullish on Fiserv’s potential for further growth, saying its new 12-month price target of $190 represents a potential upside of more than 20% from current levels.
In other recent news, Fiserv, a financial services technology company, has received several positive analyst notes following solid second-quarter results and an upbeat outlook. Mizuho Securities raised its price target on Fiserv to $183, citing the strength of its Merchant Solutions business and the company’s ability to maintain its growth outlook despite broader economic concerns. Similarly, TD Cowen raised its price target to $182, noting the company’s steady performance and successful execution of its product strategy.
B.Riley also raised its price target to $185, highlighting Fiserv’s consistent execution in driving sales growth and margin expansion. Argus, on the other hand, raised its price target from $173 to $187 following solid earnings and an improved 2024 financial outlook. Finally, RBC Capital raised its price target to $183, citing Fiserv’s geographic diversity and product innovation as key drivers.
In terms of financial performance, Fiserv reported a 31% increase in second-quarter earnings, leading to an upward revision to its full-year profit forecast. The company’s second-quarter processing and services revenue rose to $4.14 billion, while total quarterly revenue rose 7.4% to $5.12 billion, beating estimates. These are among the recent developments that have led to a series of price target adjustments from multiple analyst firms.
VscekPro Insights
As Fiserv (NYSE:FISV) continues to demonstrate solid financial performance, VscekPro’s data and insights provide additional context for investors evaluating the company’s stock. With a market cap of $90.88 billion, Fiserv trades at a P/E ratio of 27.32, which closely matches its trailing twelve-month Adjusted P/E ratio as of Q2 2024 of 27.52. The company’s PEG ratio of 0.57 suggests that its stock price is potentially undervalued relative to its earnings growth. Additionally, Fiserv’s revenue growth of 7.2% over the trailing twelve months, coupled with a gross profit margin of nearly 61%, underscores the company’s ability to maintain profitability and operating efficiency.
VscekPro’s recommendations highlight that Fiserv is not only a prominent player in the financial services industry, but also that management has been actively buying back shares, signaling confidence in the company’s future. Additionally, analysts have raised their earnings projections for the coming period, reflecting optimism about Fiserv’s potential to maintain its growth trajectory. With the company’s strategic initiatives, such as introducing new features to its Clover platform and a focus on technology investments, Fiserv is poised to capitalize on market opportunities. It’s worth noting that Fiserv does not pay a dividend, which could bias investors seeking income-generating investments. For those interested in a more in-depth analysis, additional VscekPro recommendations are available at https://www.investing.com/pro/FISV, which offer more nuanced insights into Fiserv’s market position and performance.
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