Truist Begins Coverage of Fiserv (FI) with Buy Rating

On June 2, Truist Securities initiated coverage of Fiserv, Inc. (NYSE:FI) with a Buy rating and a $181 price target, highlighting a favorable risk-reward profile despite potential short-term headwinds. The firm acknowledges investor uncertainty surrounding the company’s current setup but believes the recent underperformance presents an attractive entry point.

Analysts noted that Fiserv, Inc. (NYSE:FI) shares appear undervalued, especially relative to peers in the payments and fintech space. However, they also warned that the company’s 2025 guidance may prove too ambitious, raising the likelihood of a downward revision later this year, potentially alongside second or third quarter results. While a guidance cut typically signals caution, Truist argues that many institutional investors have already tempered their expectations. As a result, a reset may not carry the same downside risk it otherwise might. The firm sees the current share price as reflecting much of the anticipated disappointment, reducing the chance of a major negative reaction.

Beyond near-term noise, Fiserv’s diversified business model and operational scale remain intact, positioning it well for long-term earnings growth. Truist believes that the company’s fundamentals, combined with a de-risked sentiment backdrop, provide investors a favorable entry point ahead of any official revisions. The initiation signals confidence in Fiserv’s longer-term prospects, even as management may need to recalibrate expectations to reflect evolving market dynamics.

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Disclosure: None.