J.P. Morgan Maintains Neutral on Fiserv

J.P. Morgan is out with its report today on Fiserv

, maintaining Neutral. In a note to clients, J.P. Morgan writes, "FISV announced it is acquiring CashEdge, an FI-centric payments provider, for $465M (6.2x 2012E revenue) in cash. The deal is expected to be neutral on a non-GAAP basis in 2011 and accretive to 2012 adj. EPS. Despite the heavier than usual valuation paid, we view the transaction positively as it should accelerate Fiserv's push into digital payments with ample revenue synergy opportunities in high-margin payments while solidifying Fiserv's position as the top non-bank FI-centric P2P (person-to-person) network provider. We maintain our Neutral rating on Fiserv with a positive bias." Shares of FISV closed Wednesday at $61.81, up 0.18% from Tuesday's close.