Fidelity National Information Services: UBS Initiates Buy Rating Amid YTD Slump.

Fidelity National Information Services shares rose 1.6% in premarket trading after UBS initiated coverage with a Buy rating, citing a better risk-reward profile for investors. Analyst Timothy Chiodo noted the stock's 19% year-to-date slump as a buying opportunity, despite concerns over macroeconomic risks.

Fidelity National Information Services (FIS) shares gained 1.6% in premarket trading on September 12, 2025, after UBS initiated coverage with a Buy rating. The upgrade came following a 19% year-to-date (YTD) slump in the stock, which UBS attributed to recent selling pressure associated with tax loss harvesting Fidelity National Information Services stock rating upgraded to Buy by UBS^[1].

Analyst Timothy Chiodo cited several factors supporting his more positive outlook. He noted that the stock's current price of $65.78 represents a more attractive risk-reward profile for investors. Chiodo highlighted the company's prospects for earnings of $6.25+ in fiscal year 2026, improved margin expansion of approximately 60 basis points in FY 2026 compared to 20 basis points in FY 2025, and better free cash flow conversion reaching 90%+ in FY 2026 Fidelity National Information Services stock rating upgraded to Buy by UBS^[1].

The analyst also pointed to the longer-term benefits from the addition of the TSYS credit issuer processing business, which is expected to generate approximately $150 million in EBITDA synergies within three years. However, Chiodo acknowledged that share repurchases will temporarily halt after the TSYS transaction closes until leverage returns to about 2.8x Fidelity National Information Services stock rating upgraded to Buy by UBS^[1].

UBS expects relatively stable results in the second half of 2025, plus the addition of TSYS in 2026, to support both a mild 1.5 turn re-rating off the lows and increased confidence in high single-digit to low double-digit EPS compounding Fidelity National Information Services stock rating upgraded to Buy by UBS^[1].

FIS's recent earnings report showed a modest 1% top-line beat with adjusted earnings per share meeting expectations. However, the adjusted EBITDA margin performance did not meet analyst expectations, remaining flat year-over-year Fidelity National Information Services stock rating upgraded to Buy by UBS^[1]. Despite this, Raymond James and Mizuho maintained their Outperform ratings while adjusting their price targets downward Fidelity National Information Services stock rating upgraded to Buy by UBS^[1].

Based on the one-year price targets offered by 18 analysts, the average target price for FIS is $85.45, with a high estimate of $100.00 and a low estimate of $70.00. The consensus recommendation from 25 brokerage firms is currently 2.2, indicating an Outperform status UBS Upgrades Fidelity National Info (FIS) to 'Buy' Rating | FIS Stock News^[2].

GuruFocus estimates the GF Value for FIS in one year to be $88.20, suggesting an upside of 34.08% from the current price of $65.78 UBS Upgrades Fidelity National Info (FIS) to 'Buy' Rating | FIS Stock News^[2].