Michael Burry, the legendary investor portrayed in “The Big Short,” made his name by spotting the subprime mortgage bubble in the U.S. housing market before it triggered the 2008 financial crisis. Now, the famed contrarian investor is turning his attention to another beaten-down stock, Fiserv (FISV), a major U.S. payment processor, that could have significant upside potential. While this is not the first time Burry has backed an out-of-favor company, his investment moves tend to attract Wall Street's attention.
In a Nov. 2 Substack post, he suggested that the stock could be worth $100 to $120 per share in a hypothetical buyout scenario, implying a potential upside of roughly 61.2% to 93.4% from current levels as of writing. Burry believes Fiserv's weak share price reflects not just business challenges but also a loss of investor confidence following the previous management's overly ambitious growth targets and inadequate disclosures surrounding the benefits of Argentina's hyperinflation.
