Here Is Why JPMorgan Downgraded Fiserv, Inc. (FISV) To Neutral

Fiserv, Inc. (NASDAQ:FISV) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 4, JPMorgan downgraded the stock’s rating to Neutral from Overweight, with its share price target unchanged at $85.

In a research note to investors, the firm cited 2025 as a year to forget for payment stocks, with the sector projected to mark its worst performance in a decade and a half, excluding the pandemic years. The investment bank attributed the trend to a market slowdown and uncertainty around the ROI of new products.

JPMorgan believes next year will be a lot about these companies showing that they can deliver, and at the same time, investing in new areas. While the initiatives could work, they could also fail, and therefore the bank prefers to stay on the sidelines for stocks such as Fiserv, Inc. (NASDAQ:FISV), it said in the note.

As of the close of business on December 5, about two-thirds of the 35 Wall Street analysts with recommendations on Fiserv have a Hold rating for the stock. The company has a one-year average share price target of $95.05, representing an upside of 43%.

Fiserv, Inc. (NASDAQ:FISV) provides payments and financial services to clients across various financial sectors. The stock has had a difficult 2025, and is down 68% year-to-date.

While we acknowledge the potential of FISV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Drone Stocks to Buy Right Now and 8 Best Small-Cap Defense Stocks to Buy Right Now 

Disclosure: None.