Fidelity National Information Services (NYSE: FIS) shares climbed more than 1% pre-market Tuesday after UBS upgraded the stock to Buy from Neutral with a price target of $82.00.
UBS said FIS shares, down around 20% year-to-date, now represented a more attractive risk-reward following recent selling pressure partly tied to tax-loss harvesting. Analysts pointed to improved earnings visibility, with forecasts for FY2026 EPS above $6.25, stronger margin expansion, and free cash flow conversion of more than 90%.
The firm also cited synergies from the TSYS credit issuer processing acquisition, which is expected to deliver $150 million in EBITDA benefits within three years. UBS projected total shareholder returns of 11–14%, including a roughly 2% dividend yield, supported by M&A and share buybacks once leverage normalizes.
Analysts said stable second-half 2025 results combined with TSYS integration in 2026 should support higher valuation multiples and sustained EPS growth.
