Payment giants gained price target hikes heading into Q3 earnings season, while brokerages and prediction platforms navigated updated SEC rules for event contracts.
- Payment providers received price target increases from Truist, while reports suggested Visa was in talks to acquire stablecoin firm Fireblocks.
- Fiserv expanded partnerships with Klarna and VikingCloud during the week.
- The Securities and Exchange Commission approved a landmark Cboe Exchange rule change enabling cash-settled binary options.
Domestic card networks and payment processors saw positive broker sentiment and strategic risk upgrades, while Fiserv’s new partnerships and the Securities and Exchange Commission’s (SEC) approval around binary options contracts were the fintech highlights for the week of Oct. 19 to Oct. 23.
Investor attention would now shift to the Federal Reserve’s monetary policy meeting due next week to judge the future course on interest rates and its effect on fintech and lending stocks, with elevated oil prices continuing to weigh on inflation projections. Market participants are currently betting on a 91% chance that the Fed will leave rates unchanged next week.
Infrastructure Shifts Across Mastercard, Visa, PayPal, and Fiserv
Mastercard Incorporated (MA): Mastercard introduced a new risk intelligence protocol on Oct. 19 designed to bolster transaction security across global stablecoin payment rails.
Meanwhile, analysts at Truist raised the firm’s price target on MasterCard to $674 from $633 and kept a ‘Buy’ rating on the shares. “The US macro backdrop remains constructive, though the firm is wary of a slowdown in European consumer spending and the adverse impact of higher rates, the analyst told investors in a research note accessed by TheFly.
Visa Inc. (V): Visa is in late-stage talks to acquire stablecoin infrastructure and custody company Fireblocks for about $2.5 billion, Axios reported, citing multiple sources. However, Fireblocks denied Axios’ report. Truist Securities also hiked its target price on Visa to to $443 from $406.
Fiserv, Inc. (FISV): Fiserv unveiled a multi-year partnership with cybersecurity firm VikingCloud to enhance merchant threat protection and streamline PCI compliance efforts. Starting in early 2027, the payment processor will integrate VikingCloud Cyber Risk Defense, providing clients with continuous monitoring capabilities and actionable risk mitigation insights.
Additionally, Klarna (KLAR) is joining Fiserv’s Commerce Hub platform. The integration enables enterprise merchants across North America, the UK, and Europe to deliver Klarna’s payment options across both digital and physical retail locations.
How Neobank SoFi Performed
While Truist was bullish on payment operators, the research firm cut down its price target on SoFi this week to to $16 from $19.
Meanwhile, the neobank partnered with Prudential Financial (PRU) to let over 15 million SoFi members purchase Prudential term life insurance directly in the SoFi app. Eligible members are will be able to obtain coverage in minutes without a medical exam or lab work.
Shares of SoFi ended the week higher after it fell nearly 8% in the previous week amid selling pressure tied to higher interest rates. Investors would be keenly watching the firm’s deposit growth during its official earnings call on Oct. 27.
Analysts Turn Bullish On Robinhood
JPMorgan raised the firm’s price target on Robinhood to $115 from $103 and kept a ‘Neutral’ rating on the shares, while Rosenblatt initiated coverage with a ‘Buy’ rating on the firm.
“Few companies can claim to have changed an entire industry, but what started as a commission-free trading app has become a full financial platform, and the market still under-appreciates how much the story has matured,” Rosenblatt told investors in a research note, accessed by TheFly.
However, last week, Wells Fargo lowered Robinhood’s price target to $120 from $125 and kept an ‘Equal Weight’ rating on the shares. Meanwhile, founder and CEO Vlad Tenev sold nearly $43 million in company stock, but Barron’s reported he’s far from cashing out.
HOOD stock ended the week nearly 4% lower, its fifth straight week of decline and the longest weekly losing streak since January this year.
Federal Rules And Legal Updates
The SEC approved a Cboe Exchange proposal to list binary options tied to public company key performance indicators (KPIs). The contracts pay out based on whether quarterly metrics reported in Form 8-K or 10-Q filings meet specified strike levels.
KPIs include balance sheet and income statement indicators, valuation metrics like price-to-equity (P/E) ratio, and regulatory disclosures.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<