Fidelity National Information Services (FIS) PT Raised to $80 at Evercore ISI

Evercore ISI analyst David Togut raised the price target on Fidelity National Information Services (NYSE: FIS) to $80.00 (from $75.00) while maintaining a In Line rating.

The analyst comments "For 1Q24, FIS generated 3% adjusted revenue growth from continuing operations, exceeding EVRISI and Consensus of 2%. Higher software licensing revenue in Banking Solutions offset difficult comparisons tied to the March Banking crisis. Adjusted EBITDA surpassed by 1% ours’ & Consensus, benefitting from cost efficiencies tied to Future Forward and favorable revenue mix in Banking Solutions. Despite management’s decision to withdraw disclosure of quarterly backlog trends, these results represent a step in the right direction. As detailed in our recent report, “Thinking Through Upcoming Investor Day”, although FIS must still accelerate Banking Solutions revenue growth, margin expansion potential tied to Future Forward initiatives and, in particular the $500 million increase to $4.0 billion in the outsized 2024 share repurchase target bodes well for future earnings per share. Sticking with In-Line rating but raising target price to $80 from $75 based on 14x our CY25E adjusted EPS. Maintaining recently published estimates for 2024E, 2025E, and 2026E Adjusted EBITDA but raising adjusted 2024E, 2025E and 2026E EPS to $5.13, $5.85, and $6.45, respectively, from $4.75, $5.40, and $6.00, respectively, given a substantially lower taxes, higher share repurchases, and greater earnings contribution from Worldpay."

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