FISV - FIS FISV and Cardlytics downgraded to Equalweight at Wells Fargo

• Fidelity National Information Services ( NYSE: FIS ) stock is dropping 1.6% , Fiserv ( NASDAQ: FISV ) is f alling 2.0% , and Cardlytics ( NASDAQ: CDLX ) is off 3.4% in Thursday premarket trading after Wells Fargo analyst Jeff Cantwell downgraded the three stocks to Equalweight as he gets more selective in the payments, fintech, IT services sector.
• "'Higher for longer' inflation means lower valuations for longer," Cantwell wrote in a note to clients. "With that in mind, we're getting more selective."
• He's reducing most earnings estimates and price targets across his coverage ahead of Q2 earnings. He  expects solid Q2 results as data remains positive and management commentary has been constructive. While Cantwell doesn't expect guidance cuts in Q2 commentary, he does expect management to incremental costs measures and driving operating leverage.
• Cantwell's Equalweight rating on FIS contrasts with the Quant rating of Buy ; Quant rating on Fiserv ( FISV ) is also Buy, but is Hold on Cardlytics ( CDLX ).
• See why SA contributor Wolf Report has a more bullish view on Fidelity National Information Services ( FIS ).

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