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BTIG initiated coverage of Fiserv (NYSE:FI) with a Buy rating as the payment technology company’s years of investments into its platforms set it up for high single-digit/low double-digit growth over the next several years.
Cash flow should grow even faster as operating margins expand and capital expenditure investment stabilizes, analyst Andrew Harte said on Wednesday.
Fiserv (FI) is one of the world’s largest merchant acquirers and a leading fintech provider, giving it a distribution reach and capabilities that few other businesses can replicate, he noted.
“While FI is typically the 800-pound gorilla in the room, the company and its investment story are far from stale as its ~$5B in annual FCF [free cash flow] enables a virtuous cycle of reinvestment into its most attractive growth assets, while at the same time returning capital to shareholders and diligently acquiring businesses to create shareholder value,” Harte wrote in a note to clients.
Clover, the company’s cloud-based point-of-sale payment system used by retailers, is expected to grow 28%+ through FY26, he added.
Fiserv (FI) stock rose 1.1% in morning trading.
BTIG’s Buy rating on the stock contrasts with the SA Quant rating of Hold and aligns with the average SA Analyst rating and average Wall Street rating, both at Buy.
