Citi Research launched coverage on 20 payment processors and IT services providers with Buy and Neutral ratings.
Below are the stocks that were newly rated:
- Visa (V) (VISA:CA) – Buy
- Mastercard (MA) (MA:CA) – Buy
- Block (XYZ) – Buy
- Toast (TOST) – Buy
- Affirm Holdings (AFRM) – Buy
- Global Payments (GPN) – Buy
- BILL Holdings (BILL) – Buy
- PayPal (PYPL) (PYPL:CA) – Neutral
- Fiserv (FI) – Neutral
- Fidelity National Information Services (FIS) – Neutral
- Flywire (FLYW) – Neutral
- Marqeta (MQ) – Neutral
- Automatic Data Processing (ADP) – Neutral
- Paychex (PAYX) – Neutral
- Western Union (WU) – Neutral
- Accenture (ACN) – Neutral
- Cognizant Technology Solutions (CTSH) – Neutral
- EPAM Systems (EPAM) – Neutral
- Globant (GLOB) – Neutral
- Genpact (G) – Neutral
“Fintech and IT Service industries have been under pressure given uncertain outlooks, although we see investing opportunities in secular growth winners or companies with a clear accelerating organic growth picture on the horizon,” said analyst Bryan Keane.
“In Fintech, the consumer has remained surprisingly resilient despite macro uncertainty with hopes of better clarity creating a potential uptick in transaction volumes over the mid-term while BNPL continues to gain market share, growing well above industry averages,” said Keane.
“In IT Services, demand continues to be tepid while GenAI is disrupting traditional business models, causing a sea of change in the industry as pricing moves from headcount based to non-FTE models,” added the research note.