Analyst Note| Brett Horn, CFA |
While Fiserv’s fourth-quarter results continue to be affected by the pandemic, we think the company is showing some resilience. In the fourth quarter, the company managed to see modest organic growth and significant margin improvement. Management’s guidance for 2021, which hinges on pandemic impacts disappearing in the second half of the year, calls for 8% to 12% organic revenue growth and further margin improvement. This suggests management believes the company can return to normalized growth fairly quickly. We will maintain our $108 fair value estimate and narrow moat rating.