In a notable reshuffling within the financial services sector, Global Payments (GPN) has entered into a significant deal that involves the sale of Worldpay by GTCR and FIS (FIS, Financial) for $24.25 billion. Concurrently, Global Payments is set to acquire Issuer Solution from FIS for $13.5 billion. JPMorgan analysts describe the series of transactions as logical, though occurring sooner than anticipated.
While acknowledging the strategic rationale behind these moves, JPMorgan raises concerns regarding the timing, especially for Global Payments. As competitors aggressively invest in innovative products, the analyst warns that the company might be diverting crucial management focus away from growth initiatives, potentially lagging in product development. Despite these concerns, the firm retains a Neutral rating on Global Payments, indicating a balanced outlook.
On the other hand, FIS continues to garner confidence with an Overweight rating from JPMorgan, suggesting a more optimistic expectation for its growth and performance prospects despite the ongoing transactions.
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.
