UBS upgrades Fidelity National to Buy, raises PT to $82 from $82.

UBS upgrades Fidelity National to Buy, raises PT to $82 from $82.

UBS has upgraded Fidelity National Information Services (FIS) to a "Buy" rating and raised its price target to $82, up from the previous $82. The stock, currently trading at $65.78, is seen as undervalued by InvestingPro analysis Fidelity National Information Services stock rating upgraded to Buy by UBS^[1]. This upgrade comes after a year-to-date decline of approximately 20% in FIS shares, partly due to recent selling pressure associated with tax loss harvesting, which UBS expects to continue in the near term.

UBS cited several factors supporting its more positive outlook, including prospects for earnings of $6.25+ in fiscal year 2026, improved margin expansion of approximately 60 basis points in FY 2026 versus 20 basis points in FY 2025, and better free cash flow conversion reaching 90%+ in FY 2026 compared to 82-85% in FY 2025 Fidelity National Information Services stock rating upgraded to Buy by UBS^[1].

The firm also highlighted 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, 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].

In other recent news, FIS has completed its acquisition of Amount, a digital banking solutions provider based in Chicago. This move aims to enhance FIS’s capabilities in digital banking, with Amount’s platform having processed over 150 million new account applications. Additionally, FIS has reengineered its Private Capital Suite into a cloud-native software-as-a-service solution, integrating it with the newly launched Investor Services Suite to cover the full private equity lifecycle. In another development, FIS introduced its AI-powered Neural Treasury suite, designed to assist corporate treasurers in managing liquidity and financial transactions using advanced technologies like artificial intelligence and machine learning Fidelity National Information Services stock rating upgraded to Buy by UBS^[1].

On the financial front, 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. Analyst firm Raymond James responded by lowering its price target for FIS from $95.00 to $88.00, maintaining an Outperform rating despite the mixed results. Meanwhile, Mizuho also adjusted its price target for FIS, reducing it from $85.00 to $83.00, while retaining an Outperform rating and dismissing concerns about the company’s fiscal year organic revenue growth as overblown Fidelity National Information Services stock rating upgraded to Buy by UBS^[1].