Baird Cuts Fiserv Target Price 10% Ahead of Q2 Report

Investment bank Baird has raised its target price for Fiserv Inc. (FI.US) from $250 to $225, while maintaining its "outperform" rating. This adjustment comes ahead of the company's second-quarter 2025 financial report and is based on an updated financial model that reflects recent acquisition activities. The move indicates Baird's confidence in Fiserv's long-term prospects, despite the reduction in the target price. This adjustment reflects the bank's assessment of the company's current valuation and its potential for future growth, considering recent market developments and internal changes.

In the first quarter, Fiserv reported a 5% year-over-year increase in revenue to $51.3 billion. The merchant solutions business grew by 5%, while the financial solutions business grew by 6%. Earnings per share surged by 22% year-over-year to $1.51. The company reaffirmed its full-year 2025 performance guidance, projecting organic revenue growth of 10%-12% and adjusted earnings per share of $10.10-$10.30, representing a 15%-17% increase.

Strategically, Fiserv has accelerated its global expansion through a series of acquisitions. In March, the company acquired Payfare Inc., a Canadian instant income management platform, and CCV Group BV, a Dutch POS payment solutions provider. In April, Fiserv signed agreements to acquire Pinch Payments NZ Limited, an Australian payment services company, and Money Money Servi os Financeiros SA, a Brazilian fintech company focused on small and micro-enterprises.

As a leading global provider of payment and financial services technology, Fiserv operates through two main business segments: merchant solutions and financial solutions. These segments offer innovative technology services to clients worldwide, positioning Fiserv as a key player in the financial technology sector. The company's strategic acquisitions and strong financial performance underscore its commitment to growth and innovation in the payments and financial services industry.