FISV: Key Takeaways from Investor Day

研报英文原文证据摘录

FISV: Key Takeaways from Investor Day

Fiserv, Inc.

Target/Upside/Downside Scenarios Investment summary

We believe FI offers several positive attributes including: 1) aFiserv, Inc.

scaled Financial Solutions business with recurring revenues; 2)

300 125 Weeks 22DEC23 - 14MAY26 continued mix shift in merchant to higher-growth businesses,

250 such as Clover, which should help support long-term growth

200 and possible multiple expansion; and 3) a unique, global

distribution network to sell products on both of its business

150 segments.

TARGETTARGET 75.0075.00

50 CURRENTCURRENT 53.4653.46 Risks to rating and price target

0 A lack of growth in bank IT spending below what is

300m contemplated in our model or the inability to cross-sell new

200m

100m products could impede our price target and rating objectives.

2024 2025 2026

D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M Continued consolidation, bank failures, and a prolonged

FISV US Rel. S&P 500 COMPOSITE MA 40 weeks global recession could cause the stock to perform below our

Source: Bloomberg and RBC Capital Markets estimates for Target expectations and impede the achievement of our price target

Valuation and rating objectives.

Our price target of $75 is 9x our CY26 adjusted EPS estimate,

reflecting the transition that the new management team has

initiated amid a normalizing Argentina macro environment.

This includes a shift away from short-term outcomes and

deferred investments to drive quarterly numbers, as well as

ending aggressive pricing in competitive markets. While we

have confidence in the long-term execution in the strategy,

we expect the near-term growth rate to tell a different

story compared to prior years. Our price target supports our

Outperform rating.

Upside scenario