Oppenheimer has elevated its rating on Fidelity National Information Services (FIS, Financial) from Perform to Outperform, setting a price target of $94. This new valuation suggests a potential 22% rise in the company's stock value.
The financial services company recently announced its acquisition of Issuer Solutions. This move is seen as enhancing FIS's offerings to banks and reinforcing its capabilities in debit processing. Additionally, this acquisition is expected to bolster FIS’s recurring revenue stream, making it more robust.
In a strategic shift, FIS has also divested its merchant acquiring business by selling Worldpay. This sale is anticipated to reduce volatility, aligning with Oppenheimer's view that FIS is transitioning towards a more stable and predictable revenue model. Such a model is increasingly attractive to fintech investors who prefer defensive strategies in the current market environment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Fidelity National Information Services Inc (FIS, Financial) is $84.83 with a high estimate of $113.00 and a low estimate of $53.00. The average target implies an upside of 7.22% from the current price of $79.12. More detailed estimate data can be found on the Fidelity National Information Services Inc (FIS) Forecast page.
Based on the consensus recommendation from 30 brokerage firms, Fidelity National Information Services Inc's (FIS, Financial) average brokerage recommendation is currently 2.2, 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 $88.94, suggesting a upside of 12.41% from the current price of $79.12. 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.
