Bright Future For Fiserv: Analysts Upgrade Price Target And EPS Estimates Following Q2 Earnings Beat

Many analysts boosted the price target of Fiserv Inc FI after upbeat Q2 FY23 results reported yesterday.

Fiserv reported revenue growth of 7% Y/Y to $4.76 billion, beating the consensus of $4.54 billion. Adjusted EPS of $1.81 beat the consensus of $1.79.

Fiserv raised the 2023 guidance for organic revenue growth of 9% - 11% (prior view 8% - 9%) and adjusted EPS of $7.40 - $7.50 (prior $7.30- $7.40) versus consensus of $7.37.

At an Outperform rating, RBC Capital Markets raised the price target to $144 from $133, Credit Suisse upped it to $140 from $135, and Raymond James increased it to $145 from $144.

RBC Capital analyst Daniel R. Perlin revised estimates for adj. revenue to $18.09 billion (from $18.15 billion) and adjusted EPS to $7.46 (from $7.40) for 2024 and $19.4 billion (from $19.49 billion) and $8.45 (from $8.40) for 2024, respectively. 

Credit Suisse analyst raised the 2023 EPS estimate to $7.45 (from $7.38), while the 2024 EPS estimate was maintained at $8.63. 

At a Buy rating, Citigroup upped the target to $150 from $140.

The analyst raised the EPS estimate to $7.45 (from $7.35) for 2023 and $8.70 (from $8.55) for 2024. 

Also, JP Morgan raised the price target to $136 from $133, maintaining an Overweight rating.

Price Action: FI shares are trading lower by 3.28% at $123.13 on the last check Thursday.