fidelity national information services could be in for a big jump going forward according to morgan stanley analyst james faucette upgraded the fintech stock to overweight from equal weight and upped his price target by 6 to 79 his new target implies the stock could rally 197 over where it closed monday the firm is upgrading fis to ow based on a greater m  a focus likely derisked numbers compelling valuation and a more favorable vc backdrop he said in a note to clients tuesday while we acknowledge the continuation of recent structural issues can make it difficult for stock to work nearterm we think downside is limited fidelity national information services advanced nearly 2 in premarket trading on tuesday but its still down 27 so far this year continuing to slide after posting losses of 228 and 378 in 2021 and 2022 respectively the company announced monday its intention to spin off its merchant solution business faucette said the market has priced in too draconian of a multiple for the merchant business in recent years he also liked the explanation given by management for the move which was that it would free capital to improve mergerandacquisition work elsewhere and thus help defend against newer entrants the move comes as venture capital investment falls across the board which faucette thinks could help fidelity national information services thats because the corporate environment softening could lead to more opportunities for acquisitions and a better ability to defend the current business from competition meanwhile he said the companys 2023 earnings guidance shows derisked numbers despite coming in under wall street expectations he pointed specifically to the companys initial forecast of between 570 and 6 in earnings per share which is below prior consensus estimates faucette said the stocks valuation is now more compelling based on those numbers to be sure faucette said its hard to buy into the stocks longterm story if issues related to its merchant and banking businesses are not resolved while he said the merchant business has struggled from prior misallocations of capital banking growth could likely be impacted going forward if the economy weakens cnbcs michael bloom contributed to this report