Mizuho Cuts Price Targets For These Fintech Companies Post Q2 Results

Mizuho analyst Dan Dolev updated his model and price targets for Fidelity National Information Services, Inc FIS, PayPal Holdings Inc PYPL, and Block Inc SQ post 2Q results.
Dolev maintained Fidelity with a Buy and cut the price target from $130 to $120.
FIS's Q2 was a bit disappointing, and the FY organic revenue guide-down made the matter worse, he noted.
Plus, pulling the volume chart from the slide deck did not reflect strength.
He cut his 2022 and medium-term revenue and earnings estimates post Q2 results, driven by lower organic growth, more considerable FX headwinds, and higher interest.
Dolev reiterated PayPal with a Buy and lowered the PT from $120 to $118.
He noted that the Q2 results were better than expectations with the cost cuts and Elliott Management's impact assuming the center stage. All of which exhibited potential for higher margins, he added.
Dolev reaffirmed Block with a Buy and reduced the PT from $135 to $125.
SQ had mixed 2Q results, he noted. Primarily lower than expected GPV weighed on the stock.
Nevertheless, the analyst sees continued growth in new products like Borrow to help drive improved Cash App results down the road. He slightly cut his medium-term estimates.
Price Action: FIS shares traded higher by 0.68% at $98.03 on the last check Monday.

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