11:25 AM EDT, 10/15/2024 (MT Newswires) -- Fiserv's ( FI ) combination of growth durability and earnings outperformance makes it an attractive investment, especially when compared to consumer cyclical companies, Morgan Stanley said in a note Tuesday.

The firm said it is increasing Fiserv's ( FI ) price-to-earnings multiple to 21x from 17x given its growing market share and strong performance.

"Despite [Fiserv's ( FI )] premium to payments peers, it's still trading at a meaningful discount on a growth adjusted basis to consumer names, while also putting up significantly better EPS growth," analysts said in the note.

The company's earnings outperformance is driven by its Clover platform, which is expected to achieve its revenue target of $4.5 billion in 2026 through new product innovations and expanded services, the note said.

Morgan Stanley said the introduction of new products and bundles focused on small and medium-sized businesses is expected to strengthen Fiserv's ( FI ) position in the market and attract larger companies with revenue of over $1 million.

The firm raised its price target on Fiserv's ( FI ) stock to $220 from $177 and reiterated its overweight rating.

Price: 195.14, Change: +1.91, Percent Change: +0.99