Fiserv (FI) shares fell sharply on Thursday after CFO Robert Hau signaled that growth on the company’s Clover platform may not accelerate beyond last quarter’s pace. Despite the selloff, analysts at Baird maintain confidence in the fintech firm’s solid fundamentals and long-term growth prospects, suggesting that the market’s reaction “seems overblown.”
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Baird also acknowledged that the lack of volume growth acceleration for Q2 is “concerning.” However, it highlighted that there were no significant changes to Fiserv’s overall financial outlook and Hau just reaffirmed the company’s full-year guidance in his latest remarks.
Fiserv Leads S&P 500 Declines After Selloff
Fiserv shares plunged more than 16% on Thursday, making it the worst performer in the S&P 500. The sharp decline followed remarks from the CFO at the J.P. Morgan Global Technology, Media, and Communications Conference, where he said growth in the company’s Clover platform is expected to remain “generally similar” to the prior quarter. For context, in its latest earnings report for Q1 2025, Fiserv had flagged a slowdown in Clover’s growth, with volume increasing just 8% year-over-year, down from 14% in the fourth quarter of 2024.
Notably, Clover is Fiserv’s integrated point-of-sale (POS) platform that helps small and mid-sized businesses handle payments and simplify day-to-day operations.
Hau explained that some of the prior growth in Clover’s volume was driven by existing Fiserv clients transitioning to the Clover gateway platform last year, a one-time boost that cannot be repeated. This adds to concerns that Clover’s momentum may be stalling. The company also warned of growing challenges at its payment gateway business.
Other Analysts Weigh In on FI Stock
Following the steep drop in FI stock, Mizuho Securities cut its price target to $200 from $220. Despite the slowdown in volume growth, the firm emphasized that Clover’s 27% revenue growth in Q1 remains “impressive,” even with just 8% year-over-year volume growth.
Similarly, BTIG lowered its price target on Fiserv, trimming it to $215 from $240, while maintaining a Buy rating. BTIG highlighted that management’s latest comments imply a much larger acceleration in the second half of FY25 than previously anticipated. It also noted that if the “normalized” gross payment volume (GPV) growth for Clover in Q1 and Q2 averages around 11%, it still marks a deceleration from the 14% seen in Q4 2024.
Is Fiserv a Good Stock to Buy?
According to TipRanks, FI stock has a consensus Strong Buy rating among 20 Wall Street analysts. That rating is based on 17 Buys, two Sells, and one Hold assigned in the last three months. The average Fiserv price target of $228.50 implies a 43.6% upside from current levels.
