Fidelity National: Keefe, Bruyette & Woods Downgrades to Outperform, PT $85

Fidelity National: Keefe, Bruyette & Woods Downgrades to Outperform, PT $85

On September 12, 2025, Keefe, Bruyette & Woods (KBW) downgraded Fidelity National Information Services (FIS) from a 'Neutral' rating to an 'Outperform' rating, while adjusting the price target to $85.00. This move comes after a series of recent upgrades and downgrades by various analysts, highlighting the ongoing market sentiment towards the financial services company.

The upgrade by KBW reflects a positive outlook for FIS, with the firm noting that the company's earnings and growth prospects are improving. The price target of $85.00 suggests that KBW expects FIS to perform well in the near future. This rating change is significant, as it indicates that KBW believes that FIS is undervalued at its current price of $65.78.

Historically, FIS has been a strong performer in the financial services sector. The company provides core processing and ancillary services to banks and has expanded its business through acquisitions such as SunGard and Worldpay. However, recent selling pressure and tax loss harvesting have led to a decline in FIS shares, with the stock trading near its 52-week low.

UBS, another prominent analyst firm, recently upgraded FIS from a 'Neutral' rating to a 'Buy' rating, setting a price target of $82.00. This upgrade came after FIS reported earnings of $6.25+ in fiscal year 2026, along with improved margin expansion and better free cash flow conversion. UBS also highlighted the long-term benefits of the addition of the TSYS credit issuer processing business, which is expected to generate approximately $150 million in EBITDA synergies within three years.

Despite the recent downgrade by KBW, FIS continues to be a favored stock among analysts. 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 'Outperform', indicating a positive outlook for the stock.

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 and introduced its AI-powered Neural Treasury suite.

Overall, the recent downgrade by KBW and the upgrades by UBS highlight the ongoing market sentiment towards FIS. While the company faces challenges such as selling pressure and tax loss harvesting, its strong earnings and growth prospects suggest that it is well-positioned for future success. Investors should continue to monitor FIS's performance and the market's reaction to its recent developments.