Fidelity National Attractive To Oppenheimer

Oppenheimer has published a research report on Fidelity National Information Services (NYSE: FIS) as it believes the company remains highly attractive in terms of risk/reward.

In the report, Oppenheimer writes "Following FIS's recent Investor Day and the closing of its Capco acquisition, we are adjusting our estimates for 4Q10 and FY11 and initiating a FY12 estimate. Our revisions primarily reflect the inclusion of Capco (closed early Dec.), a lower core margin outlook than we anticipated, and further margin headwind from reporting changes for acquisition costs. Beyond FY11, we expect FIS to return to normalized core margin leverage close to 50 bps per annum, without added benefit from merger cost synergies. We continue to believe that FIS provides very favorable risk/reward as the improving bank spending environment should spur accelerating organic revenue growth and ultimately multiple expansion."

Oppenheimer maintains its Outperform rating and $35 price target.

Fidelity National Information Services closed Friday at $27.32.