First Data Corporation

FDC pitch long Ishaan and Ryan, first-year MBA students at CBS

Thesis

We recommend a long on First Data Corporation with an end of 2020 price target of $39, implying a 128% absolute return and 30% IRR. FDC is a winner in an oligopolistic market with industry leading margins and cash flow, and we believe short-term fears are overblown, allowing for revenue growth at 6-8%.

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