Valued at a market cap of $103.6 billion, Fiserv, Inc. (FI) provides payments and financial services technology solutions to large enterprises, small businesses, banks, credit unions, large financial institutions, public sectors, and software providers. The Milwaukee, Wisconsin-based company’s core services range from digital banking platforms and card processing to point-of-sale systems and payment gateways. 

Shares of this financial services company have outpaced the broader market over the past 52 weeks. Fiserv has soared 21.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.9%. However, on a YTD basis, the stock is down 9.1%, lagging behind SPX’s marginal drop. 

Zooming in further, FI has also outperformed the Global X FinTech ETF’s (FINX) 17.2% rise over the past 52 weeks. However, it has underperformed the ETF’s 3.7% loss on a YTD basis. 

On Apr. 24, shares of Fiserv crashed 18.5% after its mixed Q1 earnings release. The company’s adjusted earnings of $2.14 per share improved 13.8% from the year-ago quarter and came in 2.9% above the consensus estimates. A strong adjusted operating margin expansion aided its profitability. However, on the other hand, its adjusted revenue grew 5.4% year-over-year to $4.8 billion but fell short of the forecasted figure by 1.4%. The revenue miss might have raised investor concerns about slowing growth, contributing to the negative investor reaction.

Nonetheless, looking ahead to fiscal 2025, Fiserv reaffirmed its outlook, projecting organic revenue growth of 10% to 12%, and adjusted EPS in the range of $10.10 to $10.30, reflecting a 15% to 17% increase from the prior year.

For the current fiscal year, ending in December, analysts expect Fiserv’s EPS to grow 16.1% year over year to $10.22. The company’s earnings surprise history is promising. It surpassed the consensus estimates in each of the last four quarters. 

Among the 36 analysts covering the stock, the consensus rating is a “Strong Buy” which is based on 28 “Strong Buy,” four “Moderate Buy,” two “Hold,” and two “Strong Sell” ratings. 

This configuration is slightly more bullish than two months ago, with 27 analysts suggesting a “Strong Buy” rating.

On Apr. 28, Barclays PLC (BCS) maintained an “Overweight” rating on FI but lowered its price target to $230, which indicates a 23.1% potential upside from the current levels. 

The mean price target of $229.82 represents a 23% premium from Fiserv’s current price levels, while the Street-high price target of $270 suggests an ambitious upside potential of 44.5%.