- Fidelity National Information Services ( NYSE: FIS ) may be worth $85-$105 a share in a potential takeover, according a Baird analyst, after speculation earlier Thursday. FIS rose 2.1%.
- An offer for ~11x-13X 2023E EBITDA could be a possibility, Baird analyst David Koning, who has an outperform and $84 price target on FIS wrote in a note on Thursday.
- The comments come after a Betaville "uncooked" alert earlier said there's speculation that Fidelity National ( FIS ) has received interested from a strategic buyer looking to acquire all or some of the payments company. The identity is unknown, though the buyer may be a credit card payment company or U.S. technology firm.
- Potential technology firms that could be interested include IBM ( IBM ), Accenture ( ACN ) and Oracle ( ORCL ), according to Baird's Koning.
-
- "We think the stock is inexpensive, which is why there is likely takeout interest here," Koning wrote.
- If the company decides not to sell, Koning sees a potential that FIS divesst Capital Markets at some point; ~$15-$17 billion seems reasonable (~11-13X EBITDA). A sale of the business would reduce leverage to ~1X from ~3x and only be ~2-3% EPS dilutive.
- In late November Bernstein analyst Harshita Rawat saw FIS as a good candidate for potential activist involvement .
For further details see:
Fidelity National Information may be worth $85-$105/share in takeover -analyst