Fidelity National Information Services recently expanded its partnership with Visa, providing smaller banks with advanced payment capabilities, a move aligned with their strategy to innovate and grow within financial services. This partnership, along with their collaboration with ATLAS SP Partners and launch of new products like the Money Movement Hub, added weight to FIS's share price, which rose 7.5% last quarter. This performance notably outpaced the general market's 1.7% increase over the last week and its 12% rise over the past year, indicating FIS's proactive approach to leveraging strategic alliances and innovations.
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The expansion of Fidelity National Information Services partnership with Visa and the development of new products could significantly influence its growth trajectory. The company's strategy to enhance its banking capabilities through such collaborations is likely to impact revenue forecasts positively. Analysts anticipate a revenue growth rate of 4.9% annually, although execution risks remain.
Over the past year, FIS's shares delivered a total return of 9.74%. However, this performance was under the US market's return of 12.2% and notably below the US Diversified Financial industry, which returned 21.6%. Despite recent short-term gains, the longer-term share performance indicates challenges in matching industry growth.
The focus on cross-selling opportunities and treasury management solutions through strategic initiatives is expected to bolster earnings, with a forecast rise to $2.1 billion by May 2028. Current share price alignments closely with a 13.2% discount to the consensus price target of $87.38. This context underlines the market's cautious optimism while acknowledging integration and capital expenditure risks affecting free cash flow and growth initiatives.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NYSE:FIS.
This article was originally published by Simply Wall St.
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