CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our unchanged 12-month target price of $160, 16.1x our 2025 EPS estimate, discounts FI’s three-year average of 17.4x, merited given the mixed Q4 bag. Strong organic revenue guidance for 2024 (15%-17%) and Q4 Merchant Acceptance growth took a backseat to Fintech declines (-3% Y/Y). We lift our 2024 EPS view to $8.65 from $8.60 and set 2025’s at $9.95. Revenue came in at $4.64B (+6% Y/Y), missing consensus of $4.68B, while Q4 adj-EPS of $2.19 edged out consensus by $0.04. Clover posted an encouraging 30% Y/Y revenue increase as VAS penetration spiked to 19% (vs. 16% Y/Y), boosting transaction yields by 17% ($271B in annualized GPV) and driving a 14% revenue rise for Merchant Acceptance. Adj-operating margin expanded 150 bps in Q4 (40.7%) and 220 bps in 2023 (37.3%). Given the resilience of FI’s business model, we remain optimistic that the Merchant Acceptance segment – as the primary growth driver with ample room left to expand VAS – will fuel sustained revenue expansion for FI while peers may cede market share.