FISERV: Hold for Current Owners and Cautious Entry for New Buyers

3 months ago

"So if you owned Fiserf I would not be a seller at this price. I think it would be crazy to be selling the stock because the company again is buying back and is taking advantage of those prices. So I personally would not be a seller. But let's say I was trying to enter Fiserf I would personally uh give the same kind of uh recommendation I did with Evolution Gaming where I told you guys I would wait for two positive or consecutive let's say earnings per share growth or two positive margin expansion or something of two consecutive quarters of a positive trend. Maybe you will not catch the bottom. Maybe Fiserve will be let's say at 90 or $95 in six months or something and you will not catch the bottom but at least you would be riding the right trend. Now you are riding the wrong trend and maybe next quarter will be worse and they're going to lower guidance again and maybe there's a structural issue with the company that we don't know about yet."

The speaker advises current holders of FISERV to retain their positions given the company's share buyback and favorable free cash flow outlook, while cautioning new buyers to wait for two consecutive quarters of improved earnings or margin expansion before entering, suggesting that the current price may be undervalued but is subject to near-term uncertainties related to inflation adjustments in Argentina.

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