Core Viewpoint - Fiserv, Inc. is considered a beaten-down growth stock with mixed analyst ratings, highlighting the need for the company to rebuild confidence in its growth prospects after lowering EPS guidance for 2025 and deferring investments [1][2]. Analyst Ratings - Stephen Biggar from Argus Research reiterated a Hold rating on Fiserv without a price target [1]. - Andrew Harte from BTIG maintained a Buy rating with a price target of $180 [3]. - Andrew Bauch from Wells Fargo initiated a Hold rating with a price target of $130, covering 20 stocks in the payments and processors, and IT services industry [3]. Company Performance and Strategy - Fiserv has significantly lowered its EPS guidance for 2025 and needs to reset its margin and growth targets due to deferred investments [2]. - The company operates through two main segments: Merchant Solutions and Financial Solutions, providing a range of fintech solutions for payment processing and transaction management [5]. Industry Context - The payments sector has faced challenges due to a shift towards AI-centric stocks and below-average execution from many companies, yet there remains optimism about the sector's potential [4].

Core Insights - Fiserv (FI) stock experienced a historic decline of 44%, following a significant reduction in earnings guidance and a leadership overhaul [1] - Goldman Sachs downgraded the stock and lowered its price target by 55% to $81, reflecting a market capitalization of $35.4 billion and a current stock price of $66, which is down 73% from its peak [1] Financial Performance - The company projected adjusted earnings for 2025 to be between $8.50 and $8.60 per share, significantly lower than the previous midpoint guidance of $10.23 per share [2] - Revenue growth for 2025 is estimated to be between 3.5% and 4%, down from an earlier forecast of 10% [2] - In Q3 of 2025, Fiserv reported revenue of $4.92 billion and earnings per share of $2.04, both below consensus estimates of $5.36 billion and $2.64, respectively [2] Market Reactions - Morgan Stanley analyst James Faucette noted the end of Fiserv's 40-year streak of double-digit earnings growth, downgrading the stock to "Equal-Weight" and cutting the price target from $179 to $81 [4] - BTIG analysts suggested that the fair value of the stock could range between $50 and $75 based on future earnings multiples [4] Leadership Changes - Fiserv announced significant leadership changes, including the appointment of two co-presidents and a new finance chief, along with three new board members, including an independent chairman, set to take their positions in early 2026 [5] Structural Issues - The earnings call highlighted deeper structural issues within the company, with CEO Mike Lyons admitting that Fiserv had relied too much on short-term initiatives rather than fostering sustainable client relationships [6]

Core Insights - The article discusses the significant stock sale by Frank Bisignano, the former CEO of Fiserv, which coincided with a sharp decline in Fiserv's stock price following disappointing Q3 2025 financial results [1][2][4]. Company Actions - Frank Bisignano sold approximately 2.6 million shares of Fiserv for about $423 million between mid-May and late-July 2025, just before his appointment as Commissioner of the Social Security Administration [1]. - Following Bisignano's departure, Fiserv appointed Michael Lyons as the new CEO and Doyle Simmons as the non-executive Chairman [3]. Financial Performance - Fiserv reported a sequential decline in Q3 2025 adjusted revenue and reduced its organic revenue growth expectations to 3.5%-4% [4]. - The company also lowered its earnings per share (EPS) outlook to $8.50-$8.60 and announced the departure of its chief financial officer [4]. Market Reaction - The market reacted negatively to Fiserv's earnings report, causing the stock price to drop over $59, resulting in a loss of approximately $32 billion in shareholder value in one day [6]. - Analysts described the earnings miss and guidance cut as "difficult to comprehend" and labeled the Q3 results as "abysmal" [6]. Investigation - Hagens Berman has initiated an investigation into whether Fiserv misled investors regarding its business and growth prospects [2][6]. - The investigation is focused on the accuracy of Fiserv's statements about its operations and growth potential, particularly in light of the recent financial performance [3][6].

Core View - The analyst from Rothschild, Dominic Ball, maintains a sell rating on Fire Serv, indicating that the company's issues have been apparent for months, with the stock down 70% since the downgrade [1][2]. Company Analysis - The downgrade was primarily due to problems with Fire Serv's Clover product, a point of sale system, suggesting systemic issues within the company [2]. - The analyst notes that management has focused too aggressively on Clover, potentially neglecting other areas of investment [7]. - The payments industry is undergoing significant technological changes, making it challenging for companies like Fire Serv, which have grown through mergers and acquisitions, to innovate and adapt [8][10]. Market Context - Only 5% of analysts are comfortable issuing sell ratings, highlighting the contrarian nature of the analyst's position [3]. - The earnings season shows that 80% of companies are beating estimates, but this is not unusual in the current market context [11]. Comparisons with Peers - Toast is highlighted as a strong competitor in the payments space, with a focus on a single vertical and a robust R&D budget, allowing for better performance compared to Fire Serv [9][14]. - Toast has shown significant growth potential, with a target price of $60, and is expected to maintain strong margins and market share [15][17]. Investment Strategy - The analyst emphasizes the importance of deep-dive research, which allows for a more informed and high-conviction view on companies, contrasting with the typical short-term focus of other investment banks [4][13].

Company Overview - Fiserv, Inc. (NYSE:FI) is a financial technology company that provides payment, security, debit card processing, and other services to merchants [2]. Earnings Report - Fiserv reported $4.92 billion in revenue and $2.04 adjusted earnings, which missed analyst estimates [2]. - Following the earnings report, Fiserv's shares plummeted by 44% [2]. - The company reduced its full-year guidance from $10.15 to $10.30 to $8.50 to $8.60 [2]. - Revenue growth guidance was slashed from 10% to a range of 3.5% to 4% [2]. Market Reaction - Investors were particularly concerned about the reduced guidance and the performance of the merchant solutions sector, which may have been impacted by weak retail conditions [3].

Core Insights - The financial sector shows potential buying opportunities in oversold stocks, particularly those with a Relative Strength Index (RSI) below 30, indicating undervaluation [1][2] Company Summaries - **Shift4 Payments Inc (NYSE:FOUR)**: - Analyst Peter Heckmann from DA Davidson maintains a Buy rating but lowers the price target from $124 to $114 - The stock has decreased approximately 14% in the last five days, reaching a 52-week low of $66.11 - Current RSI value is 27.1, with shares closing at $66.31 after a 5.3% drop [3][8] - **Burford Capital Limited (NYSE:BUR)**: - Scheduled to release financial results for the three and nine months ended September 30, 2025, on November 5 - The stock has fallen around 21% over the past month, with a 52-week low of $9.38 - Current RSI value is 24.8, with shares closing at $9.44 after a 6.2% decline [4][8] - **Fiserv Inc (NYSE:FI)**: - Reported weaker-than-expected third-quarter results and reduced FY2025 adjusted EPS guidance - The stock has plummeted approximately 48% in the last five days, reaching a 52-week low of $64.52 - Current RSI value is 12.5, with shares closing at $65.19 after a 7.7% drop [5][8]

Core Insights - Amazon (AMZN) reported strong earnings driven by AWS, while Apple (AAPL) saw a rise due to a positive forecast despite lower iPhone and China sales [2] - Retail candy prices are up 10.8% year-over-year as retailers discount ahead of Halloween [3] - Fiserv (FI) shares plummeted 44% after disappointing earnings and guidance, leading to a significant reassessment by analysts [4][5] Company Performance - Fiserv's third-quarter results missed expectations, prompting a drastic cut in guidance and raising concerns about management stability [5] - The departure of former CEO Frank Bisignano and the challenges faced by current CEO Mike Lyons have contributed to investor fears [5][6] - Fiserv's total long-term debt stands at $25.6 billion, comparable to its current market cap, raising red flags about its financial health [7] Market Reactions - Analysts have reacted swiftly to Fiserv's performance, with many downgrading their ratings following the earnings report [4][8] - Seeking Alpha's Quant ratings had previously indicated a Sell signal for Fiserv, which proved prescient as the stock price fell from around $140 to $65 [8]

Core Insights - DJS Law Group is investigating claims against Fiserv, Inc. for potential violations of securities laws [1][2] - Fiserv reported disappointing quarterly earnings and reduced its forward guidance, leading to a significant drop in share price [2] Investigation Details - The investigation centers on whether Fiserv made misleading statements or failed to disclose important information to investors [2] - Following the earnings report, Fiserv's shares fell by more than 43.6% during afternoon trading on October 29, 2025 [2] - CEO Mike Lyons indicated that the company's growth and margin targets need to be reset [2] Legal Context - DJS Law Group specializes in securities class actions and corporate governance litigation, representing large hedge funds and asset managers [4] - The firm emphasizes the importance of respecting and focusing on the litigation claims of its clients [4]

Analyst Opinion - A lone analyst with a sell rating on Fiserv anticipated the company's stock selloff [1] - The analyst suggests that warning signs were present for months prior to the selloff [1]

Core Insights - Fiserv, Inc. (FI) is facing a significant market reckoning despite its profitability, indicating potential vulnerabilities in its market position [1] Group 1: Analyst Profile - JR Research is recognized as a Top Analyst by TipRanks and Seeking Alpha, focusing on technology, software, and internet sectors [1] - The analyst identifies attractive risk/reward opportunities that could generate alpha above the S&P 500, demonstrating outperformance with selected picks [1] - The investment strategy emphasizes growth investing opportunities with strong upside potential, avoiding overhyped stocks while targeting beaten-down stocks with recovery possibilities [1] Group 2: Investment Strategy - The investing group Ultimate Growth Investing specializes in identifying high-potential opportunities across various sectors, focusing on growth stocks with robust fundamentals [1] - The investment outlook is typically set for 18 to 24 months, aiming to capitalize on buying momentum and turnaround plays at attractive valuations [1]