Fiserv Integrates Cognition AI 'Devin' and Gains 16% Upside on $65 Target
FISV•Fiserv is integrating Cognition’s 'Devin' AI across its core banking systems to accelerate feature delivery, bolster security governance and expand engineering capacity. Morgan Stanley raised its price target to $65, implying 16% upside, as Fiserv focuses on digital payments, embedded finance and AI services while spinning off cash-handling operations.
1. Cognition AI Partnership
Fiserv has partnered with Cognition to deploy Devin, an AI coding system, across its core banking systems. Devin will handle end-to-end engineering tasks—from code review to testing and autonomous changes—enabling Fiserv teams to accelerate feature delivery, strengthen governance and security, and scale engineering without added headcount.
2. Price Target Raised to $65
Morgan Stanley increased its price target for Fiserv from $64 to $65, implying a 16% upside from current levels. The raise reflects confidence in Fiserv’s strategic initiatives and anticipated gains from AI-driven platform modernization and improved client delivery times.
3. Strategic Focus and Spinoff Plans
Fiserv is sharpening its focus on digital payments, embedded finance and AI-enabled services while preparing to spin off its cash-handling operations into a joint venture. This move aims to streamline core technology platforms, free resources for high-growth areas and enhance long-term profitability.
