Key Takeaways:
- Fiserv (FI, Financial) shares experience a 17% drop due to underwhelming first-quarter performance.
- Analysts remain optimistic about Fiserv's long-term business prospects despite short-term challenges.
- The average analyst target price suggests a potential 35.47% upside from current levels.
Fiserv's Recent Performance: A Closer Look
Fiserv Inc. (FI) shares faced a significant setback, falling by 17% after the company released disappointing first-quarter results. A significant factor contributing to this decline is the slowdown in the growth of Clover's merchant system. The reported revenue growth decelerated to 27% year-over-year, compared to 29% in the prior quarter. Additionally, gross purchase volume growth also slowed to 8%, down from 14%. Despite these challenges, analysts continue to see potential in Fiserv's business model.
Wall Street's Perspective on Fiserv
According to the one-year price targets provided by 34 financial analysts, Fiserv Inc. (FI) has an average target price of $242.75. The range spans a high estimate of $300.00 and a low of $136.00, implying a 35.47% upside from the current share price of $179.19. Investors interested in detailed estimate data can explore more on the Fiserv Inc (FI, Financial) Forecast page.
The consensus from 37 brokerage firms places Fiserv Inc.'s (FI) average brokerage recommendation at 1.8, which translates to an "Outperform" rating. This scale ranges from 1 to 5, with 1 being a Strong Buy and 5 representing a Sell signal.
Evaluating Fiserv's Fair Value
According to GuruFocus' estimates, the forecasted GF Value for Fiserv Inc. (FI) over the next year is $159.49, indicating a potential downside of 10.99% from the current price of $179.185. The GF Value is GuruFocus' estimate of the stock's fair trading value, based on historical trading multiples, previous business growth, and future performance projections. To delve deeper into these metrics, visit the Fiserv Inc (FI, Financial) Summary page.
