Redburn Atlantic has adjusted its forecast for Shift4 Payments (FOUR, Financial), reducing the price target from $100 to $90 while maintaining a Neutral rating on the stock. The firm notes that the payments industry is often misinterpreted by investors. Despite this, Redburn believes the sector is currently undervalued, exhibiting minimal earnings risk and robust cash returns.
In a broader analysis of the industry, Redburn considers Mastercard and Toast as its preferred choices. The firm argues that concerns regarding the economic cycle's impact on the payments sector might be overblown. According to Redburn, these businesses are closely linked to nominal consumption trends, which means they may not be significantly affected by a potential recession. They anticipate that any downturn would likely manifest as a volume recession rather than one impacting nominal values.
In response to the anticipated economic slowdown, Redburn has revised its estimates for the entire sector. The firm's insights suggest that while challenges are expected, certain companies within the payments sphere may still offer attractive investment opportunities.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Shift4 Payments Inc (FOUR, Financial) is $116.32 with a high estimate of $154.00 and a low estimate of $80.00. The average target implies an upside of 50.21% from the current price of $77.44. More detailed estimate data can be found on the Shift4 Payments Inc (FOUR) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, Shift4 Payments Inc's (FOUR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Shift4 Payments Inc (FOUR, Financial) in one year is $92.37, suggesting a upside of 19.28% from the current price of $77.44. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Shift4 Payments Inc (FOUR) Summary page.
