Mastercard, Fidelity National added to Raymond James' top fintech large cap picks on an 'epic 2022' ahead

• Raymond James analyst John Davis adds Mastercard (NYSE:MA) and Fidelity National Information Services (NYSE:FIS) to his top fintech large cap picks for 2022 following sluggish returns from the group last year.
• Also adds i3 Verticals (NASDAQ:IIIV) and EngageSmart (NYSE:ESMT) to his small and mid cap picks for this year.
• Specifically, fintech stocks (NASDAQ:FINX) -13.6% underperform the S&P 500 index by a wide margin in 2021, with i3 Verticals (IIIV) plunging more than -30%.
• Davis believes that fintechs will benefit from a year of recovery, especially in international travel as the Covid-19 Omicron variant appears to be less severe, the note says. Last year was the "perfect storm" for the group which led to multiple compression, setting the table for a potentially "epic" 2022, he highlights.
• For MA, which Davis rates as an Outperform pick, it will benefit from international travel return as disintermediation fears fade, in addition to the broader macro recovery, the note says.
• Raymond James' Outperform rating disagrees with the Neutral Quant Rating but aligns with the Bullish Wall Street Analyst Rating (22 Very Bullish, 10 Bullish, 5 Neutral).
• With regards to FIS (Strong Buy), Davis thinks the stock is too cheap for durable growth, with a price/earnings-growth ratio of less than 1. See more on FIS' A+ Growth Grade; highlighted by its 99% Y/Y growth in EBIT.
• Previously, (Nov. 5, 2021) Tigress highlighted a buying opportunity for Mastercard stock.

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