Investing.com -- TD Cowen upgraded Fidelity National Information Services (NASDAQ:III) to “Buy” from “Hold” raising its price target to $92 from $80 driven by company’s shift toward a more stable and transparent business model amid growing macroeconomic uncertainty.
The firm said FIS’s divestiture of a 45% stake in Worldpay and acquisition of Issuer Solutions creates a plug & play offering that increases recurring revenue, enhances margins, and improves free cash flow.
FIS is the right investment for right now,” TD Cowen wrote, calling the transaction a top grade swap for an even steadier model.
On a separate note TD Cowen analysts downgraded Global Payments as it plans to take Worldpay stake off Fidelity’s hand, saying it undermines efforts to streamline operations and introduces fresh execution risks.
Unlike other recent deals in the space, TD Cowen said the FIS transaction carries minimal near-term synergy risk, with modest revenue synergy targets and a quicker path to normalized leverage.
Issuer Solutions is nearing completion of a cloud-based platform modernization and has already secured client renewals that should support growth into 2025, the note added.
The upgrade follows what TD Cowen called solid preliminary 1Q performance that de-risks the 2025 outlook.
We see an opportunity for multiple expansion and potential upside to consolidated pro forma free cash flow, analysts said.
Related articles
TD Cowen upgrades Fidelity National to ’Buy’ on cleaner model, macro resilience
KeyBanc cuts oil forecast but upgrades Expand Energy on natural gas outlook
Abercrombie & Fitch started at neutral as ’uncertain times prevail’
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。