Rosenblatt Upgrades Fiserv, Projects Double-Digit EPS Growth

Fiserv Inc (NASDAQ: FISV) should be able to execute on accretive capital allocation and generate more than 15% earnings growth in 2021 and beyond, according to Rosenblatt Securities. 

The Fiserv Analyst: Sean Horgan upgraded Fiserv from Neutral to Buy and raised the price target from $111 to $128.

The Fiserv Thesis: Fiserv's guidance for 2021 and beyond is significantly higher than the current consensus expectations, and the company seems to be “at a comfortable level of leverage that we believe grants it a higher multiple,” Horgan said in the Thursday upgrade note. 

Fiserv will aggressively pursue share buybacks and accretive mergers and acquisitions going forward, the analyst said.  

The analyst also expects growth in e-commerce and Clover as well as “additional upside to synergy targets” to drive performance.

Fiserv “remains the biggest underperformer YTD and the least expensive stock in our payments group,” Horgan said.

The recent pressure on the shares offers “an attractive entry point," the analyst said. 

FISV Price Action: Shares of Fiserv traded around $114.50 at publication time.