Oppenheimer Believes Fidelity National Info (NYSE: FIS) Won’t Stop Here

By Jason Carr

In a report released today, Glenn Greene from Oppenheimer reiterated a Buy rating on Fidelity National Info (NYSE: FIS), with a price target of $90. The company’s shares opened today at $84.15, close to its 52-week high of $84.97.

Greene commented:

“FIS announced a definitive agreement to sell 60% of its Capco business to Clayton, Dubilier & Rice (CD&R) for $477M ($445M net fees/taxes). The deal is expected to close early in 3Q17. FIS previously anticipated an $0.11-0.12 2H17 EPS contribution from Capco. We estimate the deal could prove $0.06-0.07 dilutive to FY18E EPS (net of minority interest and capital allocation benefits), assuming cash proceeds accelerate share repurchase capacity into FY18 (perhaps $0.07 benefit if $445M is applied to repurchases). We understand the strategic rationale for the deal, as it allows FIS to increasingly focus on its faster growing and more profitable recurring and IP-led solutions. We maintain our estimates and will re-evaluate upon deal close.”

According to TipRanks.com, Greene is a top 25 analyst with an average return of 17.9% and a 80.9% success rate. Greene covers the Technology sector, focusing on stocks such as Black Knight Financial Services, Automatic Data Processing, and Jack Henry & Associates.

Currently, the analyst consensus on Fidelity National Info is Strong Buy and the average price target is $91.63, representing an 8.9% upside.

In a report issued on May 10, RBC Capital also reiterated a Buy rating on the stock with a $96 price target.

Based on Fidelity National Info’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $2.26 billion and quarterly net profit of $138 million. In comparison, last year the company earned revenue of $2.18 billion and had a net profit of $55 million.

Based on the recent corporate insider activity of 71 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Gary Norcross, the President & CEO of FIS sold 158,122 shares for a total of $13,160,494.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Fidelity National Information Services, Inc. is a financial services technology company. The company offers solutions in retail and enterprise banking, payments, capital markets, asset and wealth management, risk and compliance, treasury and insurance, as well as providing financial consulting and outsourcing services. It operates through the following segments: Integrated Financial Solutions, Global Financial Solutions, and Corporate & Other. The Integrated Financial Solutions segment focuses on serving the North American regional and community bank market for transaction and account processing, payment solutions, channel solutions, digital channels, risk and compliance solutions, and services, capitalizing on the continuing trend to outsource these solutions. The Global Financial Solutions segment serves the largest financial institutions around the globe with banking and payments solutions, as well as consulting and transformation services. The Corporate & Other segment consists of corporate overhead expense, certain leveraged functions and miscellaneous expenses that are not included in the operating segments. The company was founded in 1968 and is headquartered in Jacksonville, FL.