Clover Shows How Fiserv Can Adapt

Despite seeing a fairly strong bounceback from the impact of the pandemic this year, acquirers like Fiserv have materially underperformed the market. We believe the underperformance is at least partially explained by the market’s enthusiasm for payment names that can more easily be branded as financial technology or disruptive. We think the market’s shift in this direction has left some high-quality incumbents relatively undervalued. More recently, concerns about the near-term direction of the pandemic have added pressure.