2023-04-28 10:07:19 ET
- Stephens on Friday upgraded Fidelity National Information Services ( NYSE: FIS ) to Overweight from Equal-weight as it believes its 2023 guidance is "achievable".
- This is based on "a clearer path to revenue acceleration in 2024 across businesses, lower than previously anticipated dis-synergies, an achievable bar for estimates in 2023, and a deeply discounted valuation, which implies minimal path to value creation," said analyst Charles Nabhan.
- "While we acknowledge the execution risk associated with the split and macro headwinds facing banking and merchant segments, we see downside as limited by a seemingly achievable 2023 guide," he added.
- Stephens also revised 2023/2024 adj. EPS estimates for Fidelity ( FIS ) to $5.90/$6.47 from $5.89/$6.39.
- Price target was raised to $75 from $70, implying 33.2% potential upside to its last close.
- Shares gained for the second consecutive session, rising 2.2% on Friday. The stock fell 16% YTD.
- Stephens' views are in line with bullish sell-side ratings , but contrasts SA Quant's Hold rating .
For further details see:
Stephens upgrades Fidelity National as 2023 guidance is 'achievable'