William Blair downgrades Fidelity National Information Services stock rating on growth concerns

William Blair has lowered its rating on Fidelity National Information Services (FIS) stock from Outperform to Market Perform, citing concerns over the company's growth prospects. The research firm highlighted decelerating revenue growth and limited visibility for improvement as key reasons for the downgrade. FIS's stock has fallen 39% year-to-date and is currently trading near its 52-week low of $32.09, at $29.79 per share.

Analyst Christopher Kennedy emphasized the company's reduced guidance for two consecutive quarters and a disappointing preliminary 2027 outlook. The firm also noted the recent change in FIS's chief financial officer. Kennedy stated, "We could be marking the bottom and FIS could be a takeover candidate, but we are downgrading FIS shares to Market Perform from Outperform."

The analyst believes the stock may be range-bound due to decelerating revenue growth and limited visibility for improvement following the two consecutive quarters of reduced guidance, the disappointing preliminary 2027 outlook, and the CFO change. InvestingPro analysis suggests that FIS is significantly undervalued at current levels, trading at a P/E ratio of just 4.55.

Investors are advised to monitor further developments in the company's performance and potential strategic moves.