FISV - Fiserv: A Peek Into Longer Term Strategy

We published on Fiserv (FISV) on October 15th, where we outlined some near-term catalysts. What differentiates this piece is a focus on some longer term trends, which we further uncovered during our research on Fiserv's core competitor, Jack Henry (JKHY).

We note that the risks to Fiserv's story (around regulation, security threats, and overall consolidation in the financial services industry remain the same), while our valuation still suggests a target price of $122, per our 2020 EV/EBITDA market multiple of ~18x. The story outlined below is a long-term scenario, which shouldn't affect our multiple at