FISV Stock Rises Premarket After Posting Best Day In Nearly A Month: Burry Says Fiserv Is Cheap Enough to Hold Despite Buying It 'Poorly'

Michael Burry named Fiserv among six stocks that stood out to him as likely tax-loss sale candidates “that may not do well over the next couple of months.”

• The contrarian investor said that he is holding FISV stock after buying it “perhaps poorly” since his process at the time classified the stock as more attractive.
• Burry said he is holding FISV as it appears to be at “a cheap enough price, offering low teens long-term returns, and that I purchased poorly does not matter at this point.”
• According to The Fly, Keefe Bruyette lowered the price target on Fiserv to $60 from $65 and maintained an ‘Outperform’ rating on the shares on Monday. 

Shares of Fiserv Inc. (FISV) gained 0.23% in premarket trading on Tuesday shortly after it posted its best day since Sept. 11 amid improving retail sentiment. 

Meanwhile, ‘The Big Short’ investor Michael Burry said in a Substack post on Monday that he was holding Fiserv stock due to ”no good proxy” and “not a very significant loss either.”

Burry named Fiserv among six stocks that stood out to him as likely tax loss sale candidates “that may not do well over the next couple of months.”

Burry Says He May Have Purchased FISV Stock ‘Poorly’ 

The contrarian investor said he is holding FISV stock after buying it “perhaps poorly,” since his process at the time classified the stock as more attractive and closer to its intrinsic value estimate at a 15-year horizon, and it was at a discount in the low-mid $30s. “Insiders did buy in the $50 area,” he said. 

Burry rationalized that he could sell the stock and count on nothing happening, which he said was likely. Instead, he is holding as FISV appears to be at “a cheap enough price, offering low teens long-term returns, and that I purchased poorly does not matter at this point.”

FISV Stock: Analyst Cuts Target

According to The Fly, Keefe Bruyette lowered the price target on Fiserv to $60 from $65 and maintained an ‘Outperform’ rating on the shares on Monday. 

The analyst said that it had adjusted targets in the payments space as part of a third-quarter earnings preview, adding that it believes the "ingredients are in place" for continued relative share outperformance into earnings. 

Keefe said that payments companies are benefiting from historical trading patterns, a stable macro backdrop, and strong fundamentals.

What’s Retail Saying About FISV Stock?

On Stocktwits, retail sentiment around FISV stock jumped from ‘bearish’ to ‘bullish’ over 24 hours as message volumes increased 300% in the same time. 

One bullish user said, “$FISV $45 while analysts average nearly $60. Fiserv is beaten down, but the fundamentals aren’t dead. Digital assets are going live, Clover continues expanding, and management is targeting $12+ EPS by 2029. Small-business sales just grew 2.2% YoY too. Feels like a classic hate-it-now, re-rate-later setup. I’m bullish. $60+ doesn’t look crazy from here.”

Another bullish user said, “$FISV expecting a 15 to 25m shr buyback in q3. And about 25 to 35m for the 4.5 months ending at mid Nov.  At these prices every penny made should go to buyback.”

FISV stock is down more than 29% year-to-date. 

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