TD Cowen upgrades FIS to 'buy' after deal to acquire Global Payments unit

TD Cowen upgrades payments processing firm FIS' shares to "buy" from "hold"

Brokerage raises PT on company's shares to $92 from $80, a 23.4% upside to stock's last close

FIS on Thursday agreed to buy rival Global Payments' GPN.N issuer solutions unit, which offers card processing and account services, for $13.5 billion

As part of that deal, FIS is also offloading its 45% stake in payments processor Worldpay to GPN

Brokerage says FIS got the better end of the deal and the transaction serves as a catalyst for incremental investors to get onboard

Says the deal is "topgrade swap" for FIS as it offers a steadier profile to further insulate the durability of its financial model

15 of 29 brokerages rate the stock "buy" or higher, 13 "hold" and 1 "sell"; median PT $85 - data compiled by LSEG

As of last close, FIS stock down 7.7% YTD