On Wednesday, Mizuho Securities reiterated its buy rating and a price target of $156.00 for Fiserv Inc (NYSE:FI) (FISV), as speculation continues regarding the potential acquisition of Shift4 Payments, Inc. (FOUR). Fiserv, a prominent financial services technology company, has been mentioned alongside Amadeus as a possible suitor for Shift4 Payments, a provider specializing in integrated payment processing and technology solutions. However, Amadeus publicly expressed disinterest in a deal.
Shift4 Payments announced on November 8 that it was considering strategic alternatives, prompting discussions about possible acquisition interest from multiple parties. While Amadeus IT Group has since publicly withdrawn its interest in acquiring Shift4 Payments, Fiserv has not made any public statements confirming or denying its intentions.
Analysts see the potential acquisition as a strategic move for Fiserv, suggesting it could significantly boost Fiserv's organic growth in North America, enhance its presence in the restaurant and hospitality sectors, and resolve debates surrounding inflation in Argentina. Since November 7, Shift4 Payments' stock performance has notably outpaced its payment industry peers by 40-50%, indicating that any acquisition premium might already be factored into its current market price.
The financial firm believes that a takeover deal, if completed at an estimated price of $95 per share, could be financially beneficial for Fiserv, potentially leading to accretive earnings in the second year following the acquisition. This perspective aligns with the firm's ongoing confidence in Fiserv's stock, as reflected in the maintained buy rating and price target.