Wolfe research analysts upgraded Fiserv Inc. to "outperform" following its planned acquisition of First Data Corp., which the analysts deemed "strategically sound."

The analysts said the deal is expected to drive growth by 20% in the first year and added that the company's guidance of $500 million of revenue synergies and $900 million of cost synergies over the five-year period following the deal was conservative.

Wolfe set the price target at $84 per share, with EPS estimate of $4.84 for full year 2020.

The analysts also said they expect Fiserv's shares to perform well, based on the combined earning power of the companies.