On Thursday, RBC (TSX:RY) Capital Markets maintained its Outperform rating on Fidelity National Information Services (NYSE:FIS), with a steady stock price target of $82.00. The firm anticipates that upcoming management meetings will shed light on Fidelity National's strategic initiatives and growth plans following its Investor Day event held in May.
The management discussions, scheduled for next week, are expected to delve into the company's roadmap to achieve its earnings per share (EPS) target of $6 by 2026. Topics of interest include the company's confidence in reaching this goal, the potential for cross-selling opportunities, and enhanced execution strategies.
Moreover, the focus will be on Fidelity National's return to prioritizing digital banking after its integration of Worldpay, a payment processing company it acquired. The meetings are also set to highlight the growth prospects stemming from the company's expansion into new industry verticals and geographical markets.
The analyst from RBC Capital pointed out that these meetings are a chance to further understand the company's newly announced initiatives and strategies. This includes comprehending the steps management intends to take to reach its EPS target and the expected benefits from focusing on digital banking and exploring new markets.
Fidelity National Information Services is a leading provider of technology solutions for merchants, banks, and capital market firms globally. The company's commitment to digital banking and expansion into new areas is part of its broader strategy to maintain its position as a key player in the financial services technology sector.
In other recent news, Fidelity National Information Services has been the subject of multiple analyst upgrades and target price adjustments. RBC Capital Markets has raised its price target to $82, maintaining an "Outperform" rating, while Barclays (LON:BARC) has given an "Overweight" rating with a target price of $83. Keefe, Bruyette & Woods has also increased its target price to $85, up from $82, with a continued "Outperform" rating.
Moreover, TD (TSX:TD) Cowen has revised its target share price for Fidelity National from $70 to $75, maintaining a "Hold" rating. These adjustments follow the company's recent Investor Day, where Fidelity National outlined its growth strategy and increased its share repurchase target by $500 million to $4 billion for the year 2024.
Fidelity National also announced that it anticipates a 9-12% annual growth in adjusted earnings per share (EPS) over the medium term, with adjusted revenue growth of 4.5-5.5% annually. The company's EPS for 2024 and 2025 is estimated at $4.94 and $5.50, respectively, by Keefe, Bruyette & Woods.
Lastly, Fidelity National has launched Atelio, an embedded finance platform, as part of its commitment to innovation. The company's strategic initiatives and operational improvements have been recognized by analysts, reflecting confidence in Fidelity National's long-term performance. These are recent developments that investors should keep an eye on.
InvestingPro Insights
As Fidelity National Information Services (NYSE:FIS) continues to focus on strategic growth and achieving its EPS target, real-time data and insights from InvestingPro provide a deeper understanding of the company's financial health and market performance.
With a market capitalization of $42.41 billion, FIS is a significant player in the technology solutions space for the financial sector. Analysts have shown confidence in the company's prospects, as evidenced by the 23 analysts who have revised their earnings upwards for the upcoming period, which aligns with RBC Capital Markets' positive outlook.
InvestingPro Tips highlight that FIS has raised its dividend for three consecutive years and has maintained dividend payments for 22 consecutive years, showcasing a strong commitment to shareholder returns. Additionally, the company's net income is expected to grow this year, further reinforcing the potential for achieving its ambitious EPS target by 2026.
For investors looking to delve deeper into FIS's performance metrics and growth opportunities, InvestingPro offers additional insights. The platform notes that FIS is trading near its 52-week high, with a price total return of 42.79% over the past year, reflecting a robust market sentiment. Moreover, the company's liquid assets exceed short-term obligations, indicating a healthy liquidity position.
Interested readers can find more detailed analysis and additional InvestingPro Tips by visiting https://www.investing.com/pro/FIS. Moreover, for those seeking to leverage the full suite of tools and insights available on InvestingPro, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With this comprehensive resource, investors can make informed decisions backed by the latest data and expert analysis.
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