TD Cowen analyst Bryan Bergin has upgraded Fidelity National Information Services (FIS, Financial) from Hold to Buy, following strategic moves involving Global Payments (GPN). Bergin also increased the price target for FIS shares to $92, up from $80, citing a more favorable outlook for the company.
The upgrade comes in the wake of FIS's agreement to acquire Global Payments’ Issuer Solutions business for $13.5 billion. This acquisition is expected to bring a stable revenue stream to FIS, which could enhance its financial resilience amid macroeconomic uncertainties.
Simultaneously, FIS has agreed to sell its stake in Worldpay to Global Payments for $6.6 billion in pre-tax terms. This divestiture is part of FIS's strategy to trade a cyclical asset for one with more stability, as the Issuer Solutions business is perceived to provide a more consistent performance.
TD Cowen believes these transactions refine FIS's investment narrative, as the company shifts focus from an underappreciated stake in Worldpay to an accretive segment that strengthens its financial durability. This strategic pivot is seen as potentially leading to a re-rating of FIS's share valuation, offering new growth opportunities.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Fidelity National Information Services Inc (FIS, Financial) is $83.39 with a high estimate of $113.00 and a low estimate of $53.00. The average target implies an upside of 11.82% from the current price of $74.58. More detailed estimate data can be found on the Fidelity National Information Services Inc (FIS) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, Fidelity National Information Services Inc's (FIS, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Fidelity National Information Services Inc (FIS, Financial) in one year is $89.21, suggesting a upside of 19.62% from the current price of $74.58. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Fidelity National Information Services Inc (FIS) Summary page.
