Fiserv Shares Surpass Analyst Price Target: What It Means for Investors
In recent trading, shares of Fiserv Inc (Symbol: FI) have crossed above the average analyst 12-month target price of $216.18, changing hands for $217.94/share. When a stock reaches an analyst’s set target, that analyst typically has two choices: downgrade on valuation or adjust their target price to a higher level. Analyst reactions often depend on recent business developments that may be driving the stock price higher. If the outlook is good for the company, it might signal a time to raise that target price.
There are 33 different analyst targets within the Zacks coverage universe contributing to that average for Fiserv Inc. However, an average is just a mathematical figure. Some analysts predict lower targets, with one forecasting a price of $155.00. Conversely, one analyst has set a lofty target of $244.00. The standard deviation is $22.192.
The reason for examining the average FI price target is to leverage the “wisdom of crowds.” This approach combines the insights of various analysts rather than relying on a single expert’s opinion. With FI now above the average target price of $216.18/share, investors have a critical moment to assess the company further. They must decide whether $216.18 is just a milestone on the way to an even higher target or if the valuation has become too stretched, prompting them to consider taking some profits. Below is a summary of the current analyst outlook for Fiserv Inc:
| Recent FI Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 26 | 26 | 26 | 25 |
| Buy ratings: | 4 | 4 | 4 | 4 |
| Hold ratings: | 6 | 6 | 6 | 6 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.44 | 1.44 | 1.44 | 1.46 |
The average rating from the table ranges from 1 to 5, where 1 is “Strong Buy” and 5 is “Strong Sell.” This article references data provided by Zacks Investment Research via Quandl.com. For the latest insights, see the Zacks research report on FI — FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
