Monness analyst Gustavo Gala has reiterated their bullish stance on GPN stock, giving a Buy rating on May 2.
Gustavo Gala has given his Buy rating due to a combination of factors that indicate the current valuation of Global Payments (GPN) is undervalued. He points out that the stock trading below 9.5x the midpoint of C24 EPS guidance is a historical low, ranking in the 5th percentile since 2017, suggesting a substantial mispricing of its earnings power. Gala observes that the market’s reaction to a marginal recalibration of margins seems overly punitive, especially considering the potential for margin improvement through strategic asset rationalization. Furthermore, Global Payments has incorporated a conservative macroeconomic cushion in its 2024 guidance, which is not commonly featured in competitor outlooks, providing a more secure investment thesis.
On the operational front, Gala highlights the strength in merchant performance, noting a significant increase in merchant partner signings and solid growth in various geographic markets, despite some regional weaknesses. The promising cross-selling initiatives to the EVO customer base in Europe and the robust growth in owned software, particularly across key verticals, bolster confidence in the company’s future trajectory. Additionally, the issuer services segment shows solid growth and margin expansion, with new customer acquisitions and a healthy pipeline signaling sustained momentum. These factors, combined with a leaner, software-focused portfolio, position Global Payments for agility and growth, supporting Gala’s optimistic price target of $165, which reflects a 14x multiple of the C24 earnings estimate.
According to TipRanks, Gala is a 2-star analyst with an average return of 1.3% and a 56.25% success rate. Gala covers the Financial sector, focusing on stocks such as American Express, PayPal Holdings, and Mastercard.
In another report released on May 2, Robert W. Baird also maintained a Buy rating on the stock with a $150.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Global Payments (GPN) Company Description:
Georgia-based Global Payments, Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments in North America, Europe, the Asia-Pacific, and Latin America. The company operates through the following segments: Merchant Solutions, Issuer Solutions and Business & Consumer Solutions.
Read More on GPN:
- Global Payments price target lowered to $145 from $150 at Seaport Research
- Global Payments price target raised to $164 from $160 at Morgan Stanley
- Global Payments price target lowered to $152 from $160 at TD Cowen
- Global Payments price target lowered to $157 from $160 at Susquehanna
- Global Payments price target lowered to $119 from $159 at JPMorgan
