Fiserv Shares Drop After Analyst Cuts Price Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 10 2024
0mins
Source: MarketWatch
Fiserv's shares fell nearly 5% after analyst Hal Goetsch cut the price target from $72 to $69, indicating investor concerns about the company's future profitability.
Goetsch anticipates that Fiserv will face several quarters of year-over-year declines in earnings per share (EPS), although he projects a compound annual growth rate (CAGR) of nearly 5% from 2023 to 2027, providing some relief for patient investors. Additionally, activist investor Jana Partners recently disclosed a small stake in Fiserv and is reportedly urging management to implement changes in its business operations, which could impact the company's strategic direction.
Despite the recent price drop, Fiserv remains a significant player in the fintech space, and the anticipated changes may lead to a potential recovery if management successfully addresses the concerns raised by investors.
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Analyst Views on FISV
Wall Street analysts forecast FISV stock price to rise
28 Analyst Rating
8 Buy
20 Hold
0 Sell
Moderate Buy
Current: 53.060
Low
62.00
Averages
95.61
High
180.00
Current: 53.060
Low
62.00
Averages
95.61
High
180.00
About FISV
Fiserv, Inc. is a global provider of payments and financial services technology solutions. Its segments include Merchant Solutions (Merchant) and Financial Solutions (Financial). The businesses in its Merchant segment provide commerce-enabling products and services to companies of all sizes around the world. These products and services include merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; software-as-a-service; POS devices, and pay-by-bank solutions. The business lines in its Merchant segment consist of small business, enterprise, and processing. The businesses in its Financial segment provide products and services to financial institutions, corporate and public sector clients across the world, enabling the processing of customer loan and deposit accounts, digital payments and card transactions. The business lines in its Financial segment consist of digital payments, issuing, and banking.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Potential for Future Breakup: Jana's managing partner Scott Ostfeld mentioned that a breakup could be an option in the future if the stock does not improve, highlighting investor focus on strategic direction and shareholder value enhancement.
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