Shares of Fidelity National Information Services Inc. notched their best weekly performance since the early days of the pandemic this week as analysts chimed in with upbeat views about the financial-technology name, which took a beating a month back in the wake of a disappointing earnings report. FIS
shares rose 12.3% this week, making for their largest single-week percentage gain since the one that ended March 27, 2020, when the shares climbed 16.8%, according to Dow Jones Market Data.
Raymond James analyst John Davis wrote Wednesday that his sum-of-the-parts analysis indicates that the stock is worth $115 a share, using what he called “very conservative assumptions.” (Shares closed Friday just above $74.) He noted that while investors seem “far too focused” on the company’s merchant segment, which represents about 30% of revenue, the segment is “also significantly misunderstood/undervalued” in his view. About 75% of it is “very healthy” while the other quarter is more levered to the investor concerns around share loss among small- and mid-sized businesses, he said. “At the end of the day, we believe there are multiple ways to win from here,” Davis continued, writing that the stock was trading at under 10 times estimates earnings per share for 2023. In his view, either the company’s management executes strongly or the company could get broken up. He reiterated a strong buy on the stock and an $83 price target. Bernstein analyst Harshita Rawat commented that the company looks like “a good candid …