Earlier this week, Fiserv, Inc. (FISV) declared that U.S. Bank, subsidiary of U.S. Bancorp (USB), shall integrate its online banking platform with Fiserv’s Mobiliti Enterprise mobile banking and payments solutions. This venture would in turn merge with Apple, Inc.’s (AAPL) iPad banking application platform for the bank’s customers.
This state-of-the-art technology shall not only make account balance checking, money transfer, bill payment services etc. easier and more convenient, but also enhance the entire customer service experience substantially. The burgeoning demand for tablets in today’s world shall further stimulate this strategy and turn out to be beneficial in the global economy.
Fiserv’s Mobiliti Enterprise solutions have the reputation of building and managing important banking solutions such as text banking, iPhone applications, etc. Hence, we believe that it befits a company with the goodwill and expertise of Fiserv to deserve a deal of this stature today.
The company appears to be in quite a favourable position with the recent financial results of its 2012 first quarter. Record revenues of around $1 billion were declared, rising nearly 5% annually. Furthermore, management provided an ambitious outlook for the full year, projecting annual revenue growth of 4% - 6%. Fiserv seems to be advancing strategically to make its full year expectations come true with ease.
The Zacks Consensus Estimates for the second quarter and fiscal 2012 stand at $1.26 per share and $5.17 per share, respectively. We currently have a long-term recommendation of ‘Neutral’ for the company’s stock. In the short run, we have a Zacks #3 Rank for the stock, which translates into a short-term rating of ‘Hold’.Read the Full Research Report on USB
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