UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Fiserv on Potential Limited Revenue Growth in Short-Term

In a report published Wednesday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on Fiserv FISV, and raised the price target from $95.00 to $100.00. In the report, Deutsche Bank noted, “Limited revenue growth in short term. At its Analyst Day today in NYC, FISV reiterated FY13 and long-term guidance and focused on longer term growth opportunities from increased backlog driven by higher TCV (up 38% in 2013 compared to 2010) and ability to up-sell channel and payment solutions. Despite anniversary of headwinds from large client renewals, the internal revenue growth is only expected to slightly improve from 3% in FY14 due to slower conversion of longer-term deals. In addition, growth initiatives including Mobiliti and PopMoney are still in early stages in terms of revenue contribution and the growth in Bill Payments and debit is offset by item processing and other potential headwinds. We are raising our target price to $100 as the model has been revalued for consistency of cash flow and EPS growth; however, maintain hold as the shares appear fully valued trading at 11x our FY14E EV/EBITDA given the relatively anemic internal revenue growth.” Fiserv closed on Tuesday at $111.13.