7 Financial-Technology Stocks to Buy, According to Goldman Sachs

Andrew Harrer/Bloomberg

Goldman Sachs
Group analysts examined a coronavirus pandemic’s near-term impacts and slow effects on a remuneration industry, such as larger adoption of contactless payments and online commerce.

On Tuesday, Goldman began coverage of 15 bonds in a financial record sector, giving Buy ratings to 7 companies, and putting Mastercard and Fiserv on a Conviction List, a many bullish picks.

Among a credit label giants,
(ticker: MA) and
(V) are both instituted during Buy, with expansion intensity in a mostly untapped B2B remuneration market. Mastercard could outperform rivals, with a comparatively aloft participation in under-penetrated markets like Europe, according to an analyst.

Mastercard’s expansion in a core consumer label shred is “likely to overtake peers given bearing to Europe and expansion markets where MA is gaining share,” researcher Matthew O’Neill pronounced in a investigate note, adding that a tentative acquisition of Danish remuneration association Nets could accelerate a position in a region.

Goldman’s cost aim for Mastercard is $364 a share. The batch rose 2.1% to $296.54 on Tuesday. The cost aim for Visa is $223. Its shares were adult 1.8% to $192.33.

Also on a Conviction List is
(FISV), that is Goldman’s best collect among firms that routine digital remuneration transactions. Stable expansion and cost potency are a pivotal in a valuation.

“We trust FISV has one of a many defensive business models in a coverage given a infancy of income is subsequent from services that are vicious to support bank operations and reduction supportive to a macro environment,” O’Neill said. The researcher also remarkable cost synergy after a formation of First Data, a cloud program association Fiserv purchased for $22 billion final year, as a certain pointer for accelerated growth.

In May, Barron’s spoke with Fiserv’s new arch executive officer Frank Bisignano over a changeable trends to digital payments amid a Covid-19 pandemic.

Goldman’s aim cost for Fiserv is $125. Shares traded during $97.05, adult 2.7% on Tuesday.

Two other “deal stocks” with assertive MA activities in a remuneration estimate space—
Fidelity National Information Services
(FIS) and
Global Payments
(GPN)—also perceived Buy ratings. Goldman estimated that any company’s shares could benefit 22% and 18%, respectively, from stream prices.

Goldman also gave Buy ratings to
Open Lending
(LPRO), that provides an programmed near-prime loan height for financial institutions, and business payments company
FleetCor Technologies
(FLT), raised 28% and 21% upside potential, respectively, from their stream prices.

(SQ) is rated Neutral due to a market’s overvaluation. Shares in a fintech surged some-more than 90% in a past 3 months as investors wish that Cash App, Square’s digital wallet product, will continue to expostulate more income from consumers as millions have newly combined accounts amid a pandemic.

“Consensus Cash App unrestrained could infer too confident near-term, pushing a change in concentration towards SQ’s core Seller Business that has been significantly impacted by a pandemic,” O’Neill said, indicating a underrated disastrous effect on a merchant-oriented segment.

Goldman’s 12-month cost aim for Square is $133. The batch traded during $120.35, adult 1.5%, on Tuesday.

Euronet Worldwide
EVO Payments
(EVTC) and
(WEX) were also instituted during Neutral. Goldman put Sell ratings on
Automatic Data Processing
(PAYX) and
Western Union

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