CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target of $140 (down $7), 16.6x our 2024 EPS estimate, is a slight discount to FI’s three-year forward average of 18.1x. We raise our 2023 EPS view by $0.04 to $7.49 and leave 2024’s unchanged at $8.45. FI posted Q3 adjusted revenues of $4.62B (+12% organically), edging consensus by $200M, driven by strong organic growth in Merchant Acceptance (+20%), specifically through Clover. Clover recorded 26% revenue growth and $272B annualized gross payment volume, which is up 15%. Payments and Networks and Financial Technology both saw 6% organic revenue growth. All three segments contributed to higher operating margin (+290 bps to 38.1%) delivering a Q3 adjusted EPS of $1.96 (+20% Y/Y), beating consensus by $0.03. Despite high macroeconomic uncertainty, we remain confident in FI’s ability to continue growing revenue given the durable characteristics of its business model (high mix of recurring revenue and exposure to nondiscretionary spending categories) and expect FI to maintain revenue growth momentum.