© Reuters.
On Thursday, Goldman Sachs reinstated coverage on Fidelity National Information Services (NYSE:FIS), assigning a Buy rating to the stock with a price target of $84.00. The firm’s assessment points to a potential 25% upside from the stock’s current position.
The coverage comes after Fidelity National divested a controlling interest in Worldpay. Analysts at Goldman Sachs believe this move positions the company to achieve more consistent and predictable growth. The expectation is that FIS will experience less cyclicality and have greater visibility in its financial projections.
FIS is expected to be supported by the banking and capital markets sectors, which should drive mid-single-digit revenue growth. Goldman also anticipates benefits from an ongoing increase in cost savings and potential gains from share repurchases that are guided to continue through 2024.
Looking further ahead, FIS is projected to sustain a steady compounder financial profile. This outlook is based on the belief that the company will see an uplift in earnings growth thanks to its continued focus on capital allocation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
