Fiserv faces an uphill battle to extract sustainable value from this deal, and we expect to adjustment to our fair value estimate downward.
It's able to hold less capital against credit card loans compared with its larger, more regulated rivals.
The wide-moat firm’s recent growth has been exceptionally diverse and widespread and we see shares as modestly undervalued.
Given the recent strength in employment, we would expect the wide-moat firm's payroll revenue to be growing at a faster rate.
Despite slowing growth, margin contraction, and headwinds from weaker buy-side customer demand, the market continues to award FactSet with a higher multiple.
The company should finally realize the benefits of its growth strategy this year.
The company continues to benefit from its expansive scale and the low incremental costs of providing payroll and new offerings to customers.
The wide-moat firm will only be able to achieve growth of 5%-5.5% over the next two fiscal years.