On Monday, KeyBanc Capital Markets adjusted its outlook on Fiserv (NYSE:FI) shares, a financial services technology company, by increasing the price target to $170 from $160 while maintaining an Overweight rating.
The revision reflects a modest anticipated revenue growth, attributed to an improving consumer spending environment. This growth is evidenced by recent data showing a slight sequential increase in both first quarter monthly retail sales and credit/debit card total payment volume (TPV) processed by large U.S. banks.
The analyst from KeyBanc highlighted that the monthly U.S. sales data revealed a slowdown in food and beverage sales. However, the Fiserv Small Business Index, which includes Clover and other small to medium-sized business (SMB) exposures, showed a modest sequential rise in the first quarter of 2024. This indicator suggests that small businesses are experiencing a slight improvement.
Despite these positive signs, KeyBanc anticipates that Fiserv will maintain a conservative outlook for the calendar year 2024, aligning with the broader industry's cautious stance. Analysts and investors alike are expected to closely watch the company's Merchant solutions growth, which includes products like Clover and Carat, as well as the impact of operations in Argentina.
The financial institution's technology spending and expectations for segment-level margin expansion are also set to be key points of interest in the upcoming financial disclosures. These factors will be essential in assessing Fiserv's performance and its alignment with the projected conservative forecast for the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.