Shares in Fidelity National Information Services Inc. fell Thursday after an analyst downgraded the stock, citing its limited growth potential.
Julio Quinteros, an analyst at Goldman Sachs Group Inc., wrote in a research note Thursday, "We expect limited opportunities for incremental growth from cross-selling and new client penetration as banks contend with a series of fundamental issues."
He downgraded the Jacksonville, Fla., banking technology provider's shares to "neutral," from "buy," and noted that, after the Wednesday spinoff of its Lender Processing Services Inc. unit, Fidelity has "limited" near-term valuation potential.
Fidelity shares closed at $20.14 Thursday, down 2.94% from Wednesday's close.
Mr. Quinteros also tempered his earnings outlook for a Fidelity rival, Fiserv Inc. of Brookfield, Wis. He said that Fiserv, which announced last week plans to sell a majority stake in its insurance unit to a private equity company as part of an ongoing effort to focus on financial services, would have lower potential for organic growth.
He maintained a "neutral" rating on the company but trimmed his six-month share-price target by $5, to $51.
Fiserv shares closed at $48.24 Thursday, up 1.03%.
