Analysts at Barclays rate fintech firms FIS and Broadridge among their top financial stock picks of 2016.

Last year's acquisition of SunGard and overall high recurring revenue rate are two of the factors behind the positive view on FIS.

Barclays also views Broadridge as an ‘under-the-radar name’ with low volatility and relatively strong growth supportive of valuation upside.

“We maintain our overweight rating on FIS and Broadridge,” said Darrin Peller, equity research at Barclays Capital in New York.

“We view FIS as relatively undervalued on full-year 2017 earnings,” he added.

Payments specialist FIS purchased financial software and data specialist SunGard last year in a multi-billion dollar deal.

The purchase came after a challenging 2015 for FIS, with two downward guidance revisions due in part to a slowdown in Capco, its capital markets consulting arm.

“We conservatively estimate low-mid single digit organic revenue growth for 2016/17 with upside from large contracts like Credit Agricole continuing to ramp, and a reacceleration in Capco,” Barclays' Peller added in a note on Monday.

Meanwhile, New York-listed Broadridge is also highly rated by the analyst.

The firm provides investor communications and technology solutions for wealth management, asset management and capital markets firms.

Accenture's post-trade processing is built on Broadridge’s technology and used by banks globally.

Revenues for Broadridge in the second quarter of fiscal year 2016 increased 11% to $639m.