CS First Boston upgraded Fidelity National Information Services (FIS
) to outperform from neutral, after the company on Wednesday forecast $1.39 to $1.44 2006 GAAP earnings per share (EPS.)
Analyst Paul Bartolai says the success of the merger between FIS and Certegy will hinge on the company's ability to cross-sell services to a combined customer base. He remains concerned with organic growth trends, however, if the company is successful with its cross-sale strategy. He believes estimates will likely prove conservative. He sees $2.11 2006 cash EPS and $2.60 in 2007. He keeps a $44 stock price target.