How Will Fiserv (FISV) Stock Be Affected By This Analyst Upgrade?

NEW YORK (TheStreet) -- Fiserv  (FISV) stock is up 0.21 to $62.17 in early-market trading after BMO Capital initiated coverage on the company with an "outperform" rating and a $73 price target.

The firm cited the financial services technology company's strong new clients and growth initiatives as reasons for its rating.

Separately, TheStreet Ratings team rates FISERV INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate FISERV INC (FISV) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 16.1%. Since the same quarter one year prior, revenues slightly increased by 7.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FISERV INC has improved earnings per share by 49.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FISERV INC increased its bottom line by earning $2.45 versus $2.15 in the prior year. This year, the market expects an improvement in earnings ($3.35 versus $2.45).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 43.6% when compared to the same quarter one year prior, rising from $117.00 million to $168.00 million.
  • Net operating cash flow has increased to $292.00 million or 29.77% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -19.37%.
  • You can view the full analysis from the report here: FISV Ratings Report

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