Fiserv Inc (FI) shares plummeted 5.12% in pre-market trading on Thursday, following a shocking revelation by the company's new CEO about past management errors and a disappointing financial outlook. The fintech giant's stock price nosedived as Wall Street analysts rushed to downgrade the stock and slash price targets.

Mike Lyons, who took over as CEO in May, delivered a brutal assessment of the company's failings under previous management. In a call with analysts and investors, Lyons stated that recent sales forecasts "would have been objectively difficult to achieve even with the right investment and strong execution." He also criticized past management decisions to defer investments and cut costs, which he said improved short-term margins but are now limiting the company's ability to serve clients effectively and grow revenue.

The revelations prompted a flurry of downgrades from major financial institutions. Morgan Stanley cut Fiserv to Equal Weight from Overweight and slashed its price target to $81 from $179. Deutsche Bank reduced its target price to $78 from $122, while William Blair downgraded the stock to Market Perform from Outperform. The wave of negative sentiment from Wall Street has significantly impacted investor confidence, leading to the sharp decline in Fiserv's stock price.