FIS - FIS stock downgraded to Neutral at Credit Suisse on reduced visibility

• Credit Suisse analyst Timothy Chiodo on Tuesday downgraded Fidelity National Information Services ( NYSE: FIS ) to Neutral from Outperform after the payment technology company issued disappointing 2023 revenue guidance and unveiled its plan to spin off its Merchant Solutions unit as Worldpay.
• The analyst points to a combination of near-term revenue headwinds, deeper cost savings that could affect topline trends, an H2 weighted FY2023 guide, continued investment by rivals, and recent results vs. guidance "suggesting reduced visibility in a more dynamic cost inflation, macro, and competitive backdrop." That makes it more challenging for the Credit Suisse analyst to recommend the stock even with its attractive valuation.
• He remains relatively positive on the stock's longer-term prospects and sees potential for upside "should elongated sales cycles in banking begin to subside.
• FIS ( FIS ) stock rose 4.0% in Tuesday morning trading, after it sank almost 13% on Monday.
• Before FIS's ( FIS ) Q4 earnings were announced, SA contributor Marcos Rodriguez saw the potential for a miss and recommended buying the dip.

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