UPDATE: Oppenheimer Downgrades Fiserv to Perform on Valuation

In a report published Wednesday, Oppenheimer analyst Glenn Greene downgraded the rating on Fiserv

from Outperform to Perform. In the report, Greene noted, “Encouragingly, sales grew 25% Y/Y and management now believes synergy targets for the Open Solutions acquisition could prove conservative. Following strong appreciation in FISV shares over the last two-plus years, we step to the sidelines on valuation. Notwithstanding two consecutive quarters of relatively soft results, we remain attracted to FISV's competitive position, strong management execution, and predictable business model. FISV trades at ~9.7x our FY14 EBITDA estimate and appears fairly valued, in our view. While we anticipate FISV will, in time, grow into its valuation, we anticipate the shares could pause over the intermediate term as the Open Solutions acquisition is integrated and the market gains confidence in FISV's organic growth outlook.” Fiserv closed on Tuesday at $91.11.