Fiserv Inc (FI) Stock Forecast & Price Target

Fiserv is experiencing a notable organic revenue growth rate of approximately 16% for FY24, with its core operations indicating a more normalized growth range of 5-6% when excluding the impact of inflation-driven revenue from Argentina. The company's strategic focus on small and midsize banks, in addition to its successful integration of Clover, has contributed to a steady organic growth trajectory, particularly within its Merchant segment where growth reached 5%. Overall, Fiserv's ability to maintain consistent revenue growth, alongside a proven strategy for service expansion and market penetration, underpins a favorable outlook for the company's financial performance.

Fiserv's adjusted operating margins are projected to decline by approximately 200 basis points, a significant shift from earlier expectations of a 100 basis point increase, alongside a reduction in free cash flow to around $4.25 billion from a previous $5.5 billion estimate. Additionally, the company's Financial Solutions segment reported a 3% decline in revenue, contrasting with earlier growth expectations, while the anticipated organic revenue growth for the year has been revised downward to 3.5%-4% from a prior guidance of 10%. These indications, coupled with a notable 30% drop in the adjusted EPS forecast for 2027, underscore the company's weak growth trajectory and increased risks associated with IT spending and product cross-selling capabilities.