Fidelity National Information Services Capital Returns Delayed, BofA Says

MT Newswires Live11-06

Fidelity National Information Services (FIS) may face weaker earnings, limited share buybacks and slower profit recovery through 2028, while asset sales or stronger 2027 guidance could improve the outlook, BofA Securities said Thursday.

The investment firm expects 2027 revenue to range from a 0.5% decline to 1.0% growth, while margins could be flat or fall by as much as 100 basis points and adjusted earnings per share could drop by a high-single-digit to low-double-digit percentage.

BofA said it could become more positive on the stock if February guidance beats the current outlook, the company sets a firm timetable for reaching its 2.8 times leverage target, sells a business segment or banking recurring growth rises above 3%.

BofA downgraded the company to neutral from buy and cut its price objective to $33 from $42, saying meaningful capital returns now appear unlikely within the next 12 months.

Price: 29.98, Change: +0.22, Percent Change: +0.74

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