TD Cowen lowered its price target on Fiserv shares to $64 from $68, maintaining a Hold rating. The stock trades at $54.08, down 66% over the past year and near its 52-week low of $52.17.
The firm cited a multi-year reset from Fiserv's Investor and Analyst Day, focusing on service improvements, AI developments, and strategic synergies. Fiserv highlighted its Clover merchant mix and lapping financial services headwinds for stabilization.
TD Cowen noted AI solutions and Project Elevate offer incremental revenue and margin opportunities, but debate remains on execution credibility regarding Q2 growth trough and H2 acceleration.
22 analysts have revised earnings downwards. Fiserv is considered undervalued with a P/E of 9.03 and EV/EBITDA of 6.6.
The new $64 target reflects ~7x 2027 EBITDA and ~15x free cash flow. Fiserv projects double-digit EPS growth through 2029 and collaborates with OpenAI for AI integration.
