Fiserv's Growth Reset Will Take Time as New Management Prioritizes Long-Term Investments, Morgan Stanley Says

MT Newswires Live10-31

Fiserv (FI) is entering an investment phase to rebuild its service quality and product offerings. The work will take time and so will rebuilding investor confidence, Morgan Stanley said Thursday in a report.

New management is shifting focus away from short-term drivers such as pricing and hardware sales toward recurring revenue and customer satisfaction, the report said. The firm noted this transition will weigh on near-term earnings and delay a return to steady, mid-single-digit revenue growth.

Morgan Stanley expects fiscal 2026 to deliver low-single-digit revenue growth and a modest earnings decline as the company reinvests in its business.

Morgan Stanley downgraded Fiserv's stock to equal-weight from overweight and cut its price target to $81 from $179.

Fiserv shares fell more than 5% in recent Thursday trading.

Price: 66.92, Change: -3.68, Percent Change: -5.22

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