How Analysts Size Up Companies

Fiserv -- FI-NYSE

Buy -- $163.44 on June 18

by BTIG

We are refining our Fiserv estimates and sharing our latest thoughts on Clover growth for this year and next. Overall, total revenue is about unchanged, while Merchant Solutions revenue is slightly lifted to account for recent acquisitions, and Financial Solutions revenue is slightly lowered to account for puts and takes associated with the Target go-live and a former retail private-label client leaving the platform. We remain confident in Clover's ability to hit its $3.5 billion revenue growth target this year based on the annualization of recent wins, and also its $4.5 billion target next year as Fiserv begins to lean in to back-book conversions (Clover is currently about 800,000 of Fiserv's six million total merchants). We maintain our Buy rating and $215 price target on Fiserv.

Surgery Partners -- SGRY-Nasdaq

Buy -- $23.17 on June 17

by Benchmark Equity Research

Bain Capital and Surgery Partners' committee of independent directors recently announced that discussions related to Bain's nonbinding proposal to acquire all Surgery Partners shares have concluded. (Bain currently owns about 40% of total common outstanding.) The bid had been for $25.75 per share, a 26% premium to trading levels at the time of the initial announcement on Jan. 28. The proposal implied an 11.8 times multiple on a trailing 12-months basis, which we have believed was inadequate relative to other scaled asset transactions. We also note that health system interest in ambulatory surgery facilities is rising, most notably in Ascension Health's recent $3.9 billion bid for privately held Amsurg and Welsh Carson's announcement yesterday of an investment in Constitution Surgery Alliance....Our $35 price target implies enterprise value/Ebitda (2025) of 13.2 times, near the bottom of a five-year range of 11 to 26 times, a discount to the median valuation for a comp group of alternate site providers, and a discount to prior acquisitions of scaled network providers.

Lennar -- LEN-NYSE

Buy -- $109.49 on June 16

by Seaport Research Partners

We think Lennar met the low bar of expectations, with third-quarter gross margin guidance pointing to stability (about 18% versus 17.8% in second-quarter 2025), as second-half 2025 closings/starts slow high-single digits to about 22.5K from 24.5K prior guidance. Orders rose 6% year over year on a 30% gain in communities, with the quarter-over-quarter pace up 17% (18% three-year average). To the extent [that management] focuses on margins, in contrast to asset/inventory turns, investors and management are passing up the opportunity to more deeply expand on the turns versus margin side, of return on invested capital, that we think sets stock valuations.

Price target: $154.

PPG Industries -- PPG-NYSE

Outperform -- $106.30 on June 16

by Mizuho

PPG hosted the 15th edition of its Deep Dive series at its innovation center near Oakmont, Pa. While there is still plenty of coatings "white space" inside the can, the focus increasingly contains "outside the can" innovation to improve customer productivity/costs. This reminds us more and more of Ecolab's razor and blades model, where PPG is increasingly placing application equipment at customers that dispenses only PPG paint (e.g., Moonwalk system for auto refinish). Unlike Ecolab, PPG serves much more cyclical end markets. But unlike competitors, PPG is much more diversified by region and application, so no one cyclical market is a major driver.

Price target: $125.

Planet Fitness -- PLNT-NYSE

Buy -- $105 on June 16

by TD Cowen

Planet Fitness is our top smidcap pick, as the company combines defensive and offensive characteristics alongside a compelling catalyst path. Planet Fitness is early in a beat-and-raise cycle, and we think estimates are poised to head higher, which will expand valuation. 1) We see upside to the Street's estimated fiscal-year 2025 and estimated fiscal-year 2026 on stronger comps driven by marketing execution, a more compelling fitness layout, and less-than-feared disruption from click-to-cancel. 2) We estimate that four-wall economics for new gyms will return closer to 2019 levels, which should accelerate openings in fiscal 2026 and for Planet Fitness to potentially return to 200 openings a year by 2027 or 2028. 3) Planet Fitness is entering a new era defined by a strong management team with greater operational rigor and a test-read-react philosophy, which better position the company in a more competitive backdrop.

Price target: $125.

Marvell Technology -- MRVL-Nasdaq

Buy -- $69.99 on June 18

by Needham

Marvell Technology recently hosted its Custom AI Investor Event. Management updated investors on its expanding Data Center total addressable market and customer engagements in Custom XPUs and Custom XPU attach. Most notably, the company raised its calendar-year 2028 Data Center TAM to $94 billion (versus previous estimate of $75 billion)....Management highlighted that the company's customer pipeline has increased significantly....The company highlighted a growing pipeline of more than 50 incremental opportunities across more than 10 customers, supporting $75 billion of potential lifetime revenue.

Price target: $85.

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June 20, 2025 21:30 ET (01:30 GMT)

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