Global Payments Inc. (GPN, Financial) has been downgraded by Keefe Bruyette analyst Vasundhara Govil from an Outperform to a Market Perform rating. This downgrade comes in light of recent strategic moves by the company, including the acquisition of Worldpay and the divestiture of its issuer solutions business.
The analyst has revised the price target significantly, reducing it from $135 to $78. This adjustment reflects concerns over the increased complexity in Global Payments' business model and the heightened execution risk associated with these transactions.
The acquisition and divestment have led to uncertainties regarding the company's future performance and the potential for these assets to generate shareholder value. Consequently, the timeline for investors to assess this potential benefit has been extended.
Following these developments, Global Payments' stock (GPN, Financial) has experienced a sharp decline, dropping 15%, or $13.03, to $71.09 in afternoon trading.
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 74.65% from the current price of $71.19. 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 $124.43, suggesting a upside of 74.79% from the current price of $71.19. 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.
