Compass Point starts ‘steady’ compounder Fiserv with a Buy

As previously reported, Compass Point initiated coverage of Fiserv (FI) with a Buy rating and $278 price target The “steady compounding business with a trusted management team” has a strong mix of recurring SaaS revenue in their financial solutions segment and cyclical upside in their merchant segment, the analyst tells investors. The firm believes this mix of business provides “a unique balance” to generate long-term double-digit EPS growth with rising return on invested capital, or ROIC, the analyst added.