FISV - Fidelity National Fiserv cut to Hold at Truist as merchant revenue seen slowing

Truist Securities analyst Andrew Jeffrey downgrades Fidelity National (FIS) stock and Fiserv (FISV) to Hold as he expects slowing Merchant segment top-line growth to outweigh their steadier Core Processing, Issuer Processing, and other Payments performance.Estimates that FIS's Q2 Merchant revenue growth will be 35%, slowing to 10% in Q3 2021 and 20% in Q4 before normalizing at 10%+ in CY22.Expects FISV's Acceptance segment revenue growth to be 33% in Q2, followed by 10% in Q3 and 13% in Q4, then  slowing to 8% in CY22.Pares FIS price target to $155 (average PT is $170) and FISV's to $120 (average PT is $141).Both FIS and FISV's total returns lag the S&P 500 during the past year as seen in chart below.Jeffrey's Hold rating agrees with the Neutral Quant rating and contrasts with the average Wall Street rating of Very Bullish (22 Very Bullish, 7 Bullish, 3 Neutral, 1 Bearish)His rating on

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Fidelity National, Fiserv cut to Hold at Truist as merchant revenue seen slowing