Citi has elevated its rating on Fidelity National Information Services, Inc. (FIS, Financial) from Neutral to Buy, increasing the price target to $86 from the previous $79. This upgrade reflects Citi's positive outlook on FIS's recent acquisition of Issuer Solutions.
The acquisition fills a critical gap in FIS's capabilities by enhancing its scaled credit card processing functions, which align well with its existing bank and payments technology offerings. According to Citi analysts, the timing of the acquisition is opportune, given that the technology modernization efforts of Issuer Solutions are nearing completion.
Citi also highlights that the acquisition is accretive, effectively replacing FIS’s stake in Worldpay, a non-operating asset, with cash flows. This strategic move is anticipated to strengthen the financial performance of FIS (FIS, Financial) in the coming quarters.
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.
