Redburn Atlantic has adjusted its expectations for Global Payments (GPN, Financial), reducing the price target from $93 to $65 while maintaining a Sell rating. The move comes as the firm reassesses the broader payments industry, which it believes is not fully understood by market participants. According to Redburn, the sector is currently undervalued, offering limited risk to earnings and delivering strong cash returns.
Despite a cautious outlook for Global Payments, Redburn remains optimistic about specific companies within the industry, specifically highlighting Mastercard and Toast as their preferred picks. The firm argues that widespread concerns about how economic cycles might impact payment companies are off the mark. It suggests that payment businesses are closely tied to nominal consumer spending and that any impending economic downturns are likely to affect units rather than nominal figures.
In light of these considerations, Redburn has revised its estimates for the entire sector, factoring in expectations for an economic slowdown. The adjustments reflect an anticipation of various challenges that could arise, but also highlight opportunities within the payments industry.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 30 analysts, the average target price for Global Payments Inc (GPN, Financial) is $124.33 with a high estimate of $194.00 and a low estimate of $85.00. The average target implies an upside of 47.81% from the current price of $84.12. More detailed estimate data can be found on the Global Payments Inc (GPN) Forecast page.
Based on the consensus recommendation from 37 brokerage firms, Global Payments Inc's (GPN, Financial) average brokerage recommendation is currently 2.3, 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 Global Payments Inc (GPN, Financial) in one year is $124.46, suggesting a upside of 47.96% from the current price of $84.12. 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 Global Payments Inc (GPN) Summary page.
