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Goldman Sachs reinstated coverage on Fidelity National Information Services (NYSE:FIS) on Thursday, giving the stock a Buy rating with a price target of $84.00. The company’s valuation indicates a potential upside of 25% from the stock’s current position.
The coverage comes after Fidelity National divested a controlling stake in Worldpay. Goldman Sachs analysts believe this move allows the company to achieve more consistent and predictable growth. The expectation is that FIS will experience less cyclicality and have greater visibility in its financial projections.
FIS is expected to be supported by the banking and capital markets sectors, which are expected to drive mid-single-digit revenue growth. Goldman also expects benefits from continued increases in cost savings and potential gains from share repurchases expected to continue through 2024.
Looking ahead, FIS is expected to maintain a stable composite financial profile. This outlook is based on the belief that the company will see increased earnings growth due to its continued focus on capital allocation.
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