Jefferies has revised its outlook on Global Payments (GPN, Financial), shifting its recommendation from Buy to Hold. Additionally, the firm's price target for the company's stock has been reduced from $100 to $75. This alteration reflects Jefferies' skepticism regarding the success of scale-driven acquisitions in the merchant acquiring sector.
The analysis highlighted concerns that the integration of Worldpay and Global Payments may not yield the desired synergy. Jefferies notes that both entities face significant long-term challenges and questions the potential benefits of their partnership. The firm is cautious about the increased leverage and the focus on a more cyclical asset mix, which might not receive favorable investor support in the current economic climate.
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 79.00% from the current price of $69.46. 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 79.14% from the current price of $69.46. 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.
