This Analyst Just Slashed His Fiserv Stock Price Target by 55%. Should You Jump Ship Now?

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]