Oppenheimer Discusses Fidelity Natl Information Services

Oppenheimer & Co. has an Overweight rating and a $39 price target on shares of Fidelity Nat'l Information Services FIS. In a note to clients, Oppenheimer & Co. writes, "FIS recently confirmed reports that it made a preliminary approach regarding a possible cash offer for Misys PLC. While no assurances can be made regarding a formal offer, we believe a deal would be directionally consistent with FIS's strategy and could prove accretive, dependent on synergies. International along with new products/markets are primary components of FIS's long-term growth strategy. In addition, we believe Misys could complement FIS's recent acquisition of Capco. Conversely, Misys could entail greater than average integration risk given its capital markets and international footprints. We estimate potential for ~$0.10/sh accretion for FIS in FY12 at ~14x MSY's FY12E EBITDA (~15% premium). FIS's leverage could increase toward ~3.6x but appears manageable." Shares of FIS closed at $30.07 on Friday.