Call Now | New Best Idea Long | Fiserv (FISV)
We are adding Fiserv (FISV) as a Hedgeye Financials Best Idea Long
Notwithstanding pandemic-related headwinds and strong equity price performance of the past month, we take confidence in Fiserv's unique position as a direct beneficiary of two separate and simultaneous secular tailwinds: (1) exposure through its merchant acceptance business to the ongoing and accelerated migration to electronic payments at home and abroad, and (2) the digital transformation underway in the banking industry and the increasing needs of regional and community banks for external IT solutions like those provided by Fiserv. Moreover, with the added benefit of the company's strong synergy execution from its merger with First Data last year, we greatly favor Fiserv's offer of solid, defensive growth at a reasonable price in the payments / fintech space.
KEY POINTS OF DISCUSSION:
- Is disruption in the banking space a threat or an opportunity for Fiserv? Challenged by the growing presence of neobanks and P2P payment platforms expanding into traditional financial services, Fiserv's traditional clients, regional and community banks, are aggressively pursuing digital transformations and increasingly seeking external IT solutions like those provided by Fiserv.
- How does banking industry consolidation affect Fiserv's client base?
- What role does Zelle play and will it be successful in defending bank deposit share among Fiserv's clients against the competing threat of mobile-forward P2P payment platforms?
- Within its Merchant Acceptance business, the company’s products and services are a direct beneficiary of the ongoing and accelerated secular shift toward electronic payments at home and abroad; however, competition in the space is intense. How does Fiserv plan to maintain its place as the largest merchant acquirer in the United States?
- With high SMB exposure in its acceptance business, Fiserv's reported card-spending volume growth has meaningfully trailed figures reported by Visa. With rising case counts, we discuss the risk, especially given the recent strength in Fiserv shares, that Covid-19 impacts, notwithstanding recent vaccine developments, persist deep into 2021, putting downward pressure on high-margin revenue as spend trends continue to struggle and merchant wins .
- How does the company fare under the various Quad regimes and what does our A.I. Stock Screener think?
|
CALL DETAILS:
|
Friday, December 11th @ 10:00 AM ET - Add to Outlook Calendar
Participating Dialing Instructions:
- Toll Free:
- Toll:
- UK: 0
- Confirmation Number: 13713855
CLICK HERE to access the video and materials link
|
Joshua Steiner, CFA
Drago Malesevic, CFA
