GPN - A Post-Pandemic Spending Rebound And Ongoing Bank IT Investments Bode Well For Fidelity National Information Services
- FIS should have multiple positive drivers for at least a couple of years, including a recovery in pandemic-impacted spending (travel, et al), ongoing bank IT investments, and M&A.
- I don't believe FIS's recent merchant acquiring underperformance reflects a fundamental deterioration, but rather its own particular mix (with a greater hit to profitable categories like travel).
- FIS is winning more core processing business from large banks, and consolidation should favor FIS in that regard.
- Valuation is somewhat mixed here, but there's a case for a fair value close to $170 and I like the growth drivers over the next few years.
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A Post-Pandemic Spending Rebound And Ongoing Bank IT Investments Bode Well For Fidelity National Information Services