J.P. Morgan Resumes Coverage On Fidelity National Information Services

J.P. Morgan Chase & Co. is out with a research report on Fidelity National Information Services FIS and is resuming coverage with an Underweight rating and a $30 price target. In a note to clients, J.P. Morgan Chase & Co. writes, "Our rating is a relative call, allowing us to express our preference for other stocks, including N-rated Fiserv. FIS stock has held up well since the market top on July 22, down only 8% vs. S&P500 down 14% and rival FISV down 14%, as revenue growth has been solidly stable, aided by low-margin sources. We see more downside than upside to growth from here, given above-average reliance on discretionary consulting fees (Capco), exposure to Europe and tough comps ahead in Brazil. We see greater safety in Fiserv; hence our Underweight rating for FIS. We do not view FIS as an absolute short and still see 7% upside given our Dec-12 price target of $30." Shares of FIS gained $1.00 yesterday to close at $28.00.