Fidelity National Information Services (NYSE:FIS) Likely to Achieve 2016 Expectations

April 14, 2016

Fidelity National Information Services

Brett Huff, Managing Director at Stephens Inc., says Fidelity National Information Services (NYSE:FIS), a provider of technology and payment services to banks, is one of his top picks this year.

It’s one of the companies in the processing subsector […] and in particular it has a greater focus on large financial institutions, international financial institutions relative to its peers. So that’s its differentiation.

We like FIS because we think it’s a good value after the multiple compressed in 2015 due to some underperformance in revenue in the big bank spending segment of its business…While the variability in this big bank services rev occurred, we think it has stabilized, and we think the expectations that FIS has set for 2016 are reasonable.

If and when they achieve those expectations, which we think they will, we think the market will regain some of the confidence in the predictability of that business and we think the multiple will benefit from that. We also think a recent acquisition they did called SunGard will yield some compelling medium-term rev and cost synergies.

Brett Huff