On Sep 25, major Wall Street analysts update their ratings for $Global Payments (GPN.US)$, with price targets ranging from $122 to $194.
Morgan Stanley analyst James Faucette maintains with a buy rating, and adjusts the target price from $164 to $156.
J.P. Morgan analyst Tien Tsin Huang maintains with a hold rating.
BofA Securities analyst Jason Kupferberg maintains with a buy rating, and maintains the target price at $156.
Barclays analyst Ramsey El Assal maintains with a buy rating, and maintains the target price at $145.
Jefferies analyst Trevor Williams maintains with a buy rating, and maintains the target price at $130.
Furthermore, according to the comprehensive report, the opinions of $Global Payments (GPN.US)$'s main analysts recently are as follows:
Global Payments' recent Investor Day is noted to have fallen short of clarifying market confusions, and it seems investors may still be seeking further clarity on the company's business segments and the quality of its earnings. Despite this, the company's valuation is perceived as compelling against the backdrop of solid fundamentals. However, patience may be required, along with sustained outperformance, for the stock to gain traction.
The company's recent Investor Day was marked by volatility, with guidance for 2025 falling short of expectations and a lack of reaffirmation of its 2024 outlook, which may suggest an anticipated slowdown in the latter half of the year. On the positive side, an emphasis on capital management, including increased buybacks and potential gains from dispositions, was highlighted. Conversely, a modestly lower free cash flow conversion was noted as a slight drawback.
The analyst noted that although the Investor Day message for Global Payments was initially well-received, there was later a recognition that the execution of the strategy would result in a transition year in FY25 with growth below the street's expectations. Despite this, there are several positive elements in the company's renewed strategy, and the value proposition remains attractive from a relative standpoint.
After attending the company's 2024 investor day, an analyst noted the introduction of a significant operational transformation initiative, detailed financial profiles for the Merchant Solutions subsegment, and the provision of FY25 guidance alongside an updated medium-term model outlook. The company's preliminary guidance for FY25 suggests a 'transition year,' where resources will be reallocated within Merchant Solutions to support the operational transformation. Despite the FY25 forecast, the analyst expressed encouragement regarding the FY26/2027 aspect of the medium-term outlook and the updated approach to capital allocation.
The absence of a clear strategy for Global Payments to enhance growth by fiscal 2026 suggests the stock might remain stagnant for the upcoming quarters. The initial guidance for fiscal 2025 was not up to market expectations, although there was a medium-term forecast that hinted at hastened growth for both revenue and earnings. The analyst notes that the requirement to hasten the company's performance in a 15-month period to achieve these medium-term goals is the reason for a less optimistic outlook.
Here are the latest investment ratings and price targets for $Global Payments (GPN.US)$ from 13 analysts:
Note:
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