Cowen & Co. LLC upgraded its rating on Fiserv Inc. last week, to "outperform" from "neutral," citing a number of factors related to the vendor's "Fiserv 2.0" initiative.
Moshe Katri, an analyst at the New York investment bank, said in a note to investors that he had a "greater conviction in management's willingness to unlock value," after the Brookfield, Wis., technology company announced an agreement last month to sell its investment services unit.
The action "could be the beginning of an overall trend to unlock value," Mr. Katri wrote. "With the potential for more sales of underperforming units at Fiserv," he predicted the company's shares could rise 20% ahead of the market in the next six to 12 months.
Fiserv announced last month that it had agreed to sell its investment services unit to TD Ameritrade Holding Corp. for at least $225 million and potentially as much as $325 million, if the operation achieves certain goals. The deal is expected to close in four to six months.
Fiserv shares were trading at $58.09 at midday Monday, down 1.34% from Friday's close but up 3.14% from its closing price last Tuesday, the day before the Cowen upgrading was announced.
