This article first appeared on GuruFocus.
Michael Burry (Trades, Portfolio) sees a possible buyout price of $100 to $120 per share for Fiserv (FISV), or 100% to 140% above its recent price of about $50.
He used reportedprivate equity interest in Global Payments (NYSE:GPN) as a yardstick, applying a similar multiple of about seven times profit to Fiserv. He also cited insider buying.
Burry said Fiserv has been held back by overly ambitious growth targets from prior management and poorly disclosed gains from Argentine hyperinflation. At about $50, he believes the stock could return 15% or more annually, and he plans to keep his position.
Burry also added to positions in BYD (BYDDY), Sprouts Farmers Market (SFM) and JD.com (JD), without disclosing the size of the purchases. The Sprouts additions are 2028 LEAP <a href="https://bitcomme.com/compass-diversified-q3-earnings-call-highlights/” title=”Compass Diversified Q3 Earnings Call Highlights”>call options, long-dated contracts that give the right to buy shares at a set price, while JD’s are 2029 calls.
He likened Hong Kong stocks’ slide since the Hang Seng Index’s 2021 peak to the Great Depression. He also reiterated a positive view on PayPal (NASDAQ:PYPL) at prices in the $50s.
