Fiserv initiated with an Overweight at Wells Fargo

Wells Fargo initiated coverage of Fiserv with an Overweight rating and $180 price target. The analyst believes the company scaling Clover and Carat are the key drivers to support its long-term valuation. While competitive questions across Merchant and Financial Solutions linger, 40 years of double-digit earnings growth is evidence of Fiserv’s resilient business model, the analyst tells investors in a research note. Wells sees Fiserv’s “consistently underappreciated” Merchant business and high free cash flow conversion helping drive consistent shareholder returns.