Overview
TD Cowen has revised down its price objective for Fiserv (NASDAQ:FISV) to $68.00 from $77.00 and left its recommendation unchanged at Hold. The research house noted that the new target sits notably below InvestingPro’s Fair Value assessment, implying that the stock may be materially undervalued despite trading at a price-to-earnings ratio of 9.49.
Quarterly results and recent performance
The firm characterized the company’s fourth-quarter results as "no surprises," a description it viewed positively given Fiserv’s ongoing organizational and strategic reset. For the last twelve months, Fiserv recorded revenue of $21.19 billion. Despite that scale, the stock has experienced a steep decline, falling 72.77% over the past year.
Separately, Fiserv announced fourth-quarter adjusted earnings that exceeded analyst expectations, while revenue for the same period fell slightly short of estimates. Those mixed results underline the uneven near-term financial picture the company is facing.
Analysts' adjustments and rationale
TD Cowen expects Fiserv’s growth and margin profile to weaken through the first half of 2026 before showing signs of recovery in the second half of the year. The research team cited "ample execution risk" and "limited near-term catalysts" leading up to the company’s Investor Day in May, concluding that shares may remain rangebound in the interim as investors adopt a "wait and see" stance.
In related analyst movement, Morgan Stanley reduced its price target on Fiserv to $64 from $81 and kept an Equalweight rating. That adjustment reflects Morgan Stanley’s use of a lower price-to-earnings multiple together with a reduced earnings per share estimate for fiscal year 2027.
Market and investor implications
The combination of a significant share-price decline over the past year, mixed quarterly results, and cautious analyst guidance has shaped a cautious market environment for Fiserv. Analysts point to execution risk and a scarcity of immediate positive catalysts as reasons investors may refrain from taking aggressive positions before May’s Investor Day.
Conclusion
With two major firms trimming targets and emphasizing execution and near-term catalyst concerns, Fiserv’s stock enters a period in which investor patience appears likely. The company’s Q4 adjusted earnings beat and slightly missed revenue underscore the mixed signals that analysts are weighing when setting targets and outlooks.