Fiserv's (NASDAQ:FISV) Growth Rate on Lower End of Range

Barclays (NYSE:BCS) realizes there are some things that could nudge Fiserv (NASDAQ:FISV) to a better-than-expected growth rate, but at this time they see growth coming in at the low end of the projected range.

Barclays said, "We recently had the opportunity to meet with FISV's CEO, Jeff Yabuki, with discussions centering around the company's growth trajectory. While we believe a long-term growth rate closer to the low end of the targeted range (4-8%) is priced-in, we think FISV has the potential to achieve some level of multiple expansion if it can demonstrate an ability to reach the mid- to higher end of the growth target over time.

"We are not yet ready to call that trend, but ... factors ... could potentially push the growth rate higher than market expectations over time, including ongoing opportunities to gain further wallet share of FISV's core client base and gains in nascent but potentially higher-multiple initiatives such as P2P, analytics, and mobile. Overall, normalizing fundamentals and targeted growth in higher multiple initiatives allow us to be more constructive on FISV, although we wait for clearer visibility to earnings contribution from some of these newer initiatives."

Barclays maintains an "Equalweight" rating on Fiserv, which closed Tuesday at $58.44. Barclays has a price target of $60 on them, raising it from $68.