12:43 PM EDT, 10/30/2025 (MT Newswires) -- Fiserv ( FI ) is entering an investment phase to rebuild its service quality and product offerings. The work will take time and so will rebuilding investor confidence, Morgan Stanley said Thursday in a report.

New management is shifting focus away from short-term drivers such as pricing and hardware sales toward recurring revenue and customer satisfaction, the report said. The firm noted this transition will weigh on near-term earnings and delay a return to steady, mid-single-digit revenue growth.

Morgan Stanley expects fiscal 2026 to deliver low-single-digit revenue growth and a modest earnings decline as the company reinvests in its business.

Morgan Stanley downgraded Fiserv's ( FI ) stock to equal-weight from overweight and cut its price target to $81 from $179.

Fiserv ( FI ) shares fell more than 5% in recent Thursday trading.

Price: 66.92, Change: -3.68, Percent Change: -5.22