J.P. Morgan Downgrades Fiserv (FISV) to Hold, Keeps the PT

​Fiserv, Inc. (NASDAQ:FISV) is one of the Cheap NASDAQ Stocks to Buy Now. On December 4, Tien Tsin Huang from J.P. Morgan downgraded Fiserv, Inc. (NASDAQ:FISV) from Buy to Hold while maintaining a price target of $85. Earlier on December 2, UBS also maintained a Hold rating on the stock with a $75 price target

​Analyst Tsin Huang of J.P. Morgan expects 2026 to mark the reset for the Fintech sector. He noted 2025 to be the worst year for the sector in 15 years, characterised by slower growth. While Huang likes companies with pricing power, solid front-book momentum, and strong incremental margins, he suggested investors “steer clear of turnarounds such as Fiserv, Inc. (NASDAQ:FISV).” He added that 2026 will demand execution and investment from the company, therefore “a lot can go right,” and “a lot can disappoint too,” noted Huang of J.P. Morgan.

​Similarly, analysts at UBS also have a conservative outlook on the stock. The firm noted that the company expects full-year margins to decline by around 200 basis points, while the fourth quarter margins are expected to drop by more than 750 basis points. The firm added that the Financial Solutions segment of the company is also not expected to deliver any solid margin change from its 500 basis point decline in Q3 2025. Therefore, considering the muted performance, the firm maintained a Neutral stance on Fiserv, Inc. (NASDAQ:FISV).

​Fiserv, Inc. (NASDAQ:FISV) is a global leader in financial technology and payments, providing services to financial institutions, businesses, and merchants. The company offers solutions for account processing, digital banking, e-commerce, fee processing, risk management, and data analytics.

While we acknowledge the potential of FISV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FISV and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.