Payments firm FIS rises after TD Cowen upgrades to 'buy'

Shares of payments processing firm FIS rise 3.5% to $77.21

TD Cowen upgrades FIS to "buy" from "hold"; raises PT to $92 from $80, implying 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

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

The deal is "top-grade swap" for FIS as it offers a steadier profile to further insulate the durability of its financial model - brokerage

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

As of last close, FIS shares down 7.7% YTD