On Sep 26, major Wall Street analysts update their ratings for $Global Payments (GPN.US)$, with price targets ranging from $130 to $156.
Morgan Stanley analyst James Faucette maintains with a buy rating, and adjusts the target price from $164 to $156.
Goldman Sachs analyst Will Nance maintains with a buy rating, and adjusts the target price from $138 to $132.
Citi analyst Ashwin Shirvaikar maintains with a buy rating, and adjusts the target price from $145 to $142.
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:
Analysts have expressed some disappointment following Global Payments' Investor Day, which did not significantly clarify market confusions, likely leaving investors seeking further transparency on the company's business segments and the quality of its earnings. Despite this, analysts maintain a positive outlook on the company, citing what they consider an attractive valuation and robust fundamentals. They suggest that it may require a period of sustained outperformance for the company's stock to advance.
Global Payments experienced volatility surrounding its Investor Day, where management's guidance for 2025 fell short of expectations, and a lack of reiteration for its 2024 outlook hinted at a potential slowdown in the latter half of the year. While the company's focus on capital management, including increased buybacks and gains from dispositions, was a highlight of the event, the reduced free cash flow conversion was seen as a minor drawback.
The perception of Global Payments' Investor Day message shifted when it was understood that carrying out the outlined strategy would result in a transition year in FY25 with growth not meeting market expectations. Despite this, the renewed strategy of the company presents several positive elements and is seen as an appealing relative value proposition.
The analyst noted that after attending Global Payments' 2024 investor day, the company announced a significant operational transformation initiative, provided detailed insights into the financial profiles of its Merchant Solutions subsegments, and presented guidance and a mid-term model outlook for FY25. Although the preliminary guidance for FY25 suggests a 'transition year' with the reallocation of resources within Merchant Solutions to support the ongoing operational changes, the analyst found the prospects for FY26/2027 within the mid-term outlook, as well as the updated approach to capital allocation, to be promising.
The absence of clear guidance on the company's ability to hasten growth by fiscal 2026 positions the stock in an uncertain zone for the coming quarters. Global Payments' initial fiscal 2025 projections fell short of market expectations, yet the company did offer a medium-term forecast that anticipates faster growth in both revenue and earnings.
Here are the latest investment ratings and price targets for $Global Payments (GPN.US)$ from 4 analysts:
Note:
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