03:25 PM EDT, 05/07/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

FIS's Q1 results were sound, as a combination of well-balanced segment performance reflecting strong demand across digital banking, payments, and risk compliance solutions, as well as a bottom-line beat, led to a modest boost in the adj-EPS target for 2024 of $4.88-$4.98 (vs. $4.66-$4.76 previously). Q1 revenues were $2.47B (organic growth of 3% Y/Y), topping consensus of $2.45B, as Banking (+2%) and Capital Markets (+6%) cleared the internal growth targets for the quarter. What stood out to us was the uplift in adj-EBITDA margin (+200 bps) to 39.5%, driven by cost optimization initiatives, boosting margins in the Banking segment (+350 bps). We also note margins fell 80 bps in Capital Markets. Adj-EPS came in at $1.10, above consensus by $0.14. We increase our target price by $7 to $83, 15.4x our 2025 EPS estimate, a slight premium to its three-year average, which is warranted given FIS's focus on optimizing its business segments. We raise our 2024 EPS to $4.95 from $4.70 and 2025's to $5.39 from $5.22.