CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
FI’s share price has shown strength (+19% year-to-date) and we believe there is still more upside given improving fundamentals and strong revenue growth with high profitability. We raise our 12-month target by $20 to $180 using a forward P/E of 18.1x, in line with its three-year forward average. We keep our 2024 EPS view at $8.65 and 2025’s at $9.95; our revenue forecast is $19.6B (+9%) in 2024 and $21.4B (+9%) in 2025. In our view, FI’s core merchant business solutions, Carat and Clover, will drive revenue growth by tapping into the digital payment surge. With Clover set to enter five new international markets by 2025 and the e-commerce boom, FI’s Merchant segment, which is integrated with online tools, is poised for expansion fueled by trends like mobile wallets and contactless payments. FI boasts high levels of profitability, with adj-operating margin up 220 bps to 37.3% in 2023. We estimate a 100-bp expansion in 2024, given its higher-yield Merchant business and pricing escalators in Fintech and Payments.