TD Cowen analyst Bryan Bergin has revised his outlook on Global Payments Inc. (GPN, Financial), downgrading the stock from Buy to Hold. Additionally, the price target for the company's stock has been reduced from $110 to $78.
The decision comes as the firm supports Global Payments' planned divestment of its Issuer Solutions segment, which aligns with its strategic goals. However, concerns have been raised about the company's acquisition of Worldpay, which is perceived as introducing added complexity and financial leverage, increasing execution risks at a time when a simpler operational model is preferred.
Despite the current valuation of Global Payments shares being potentially attractive, the absence of significant short-term catalysts to drive investor interest is a concern. The company's exposure to cyclical market conditions is growing, especially in an environment marked by heightened market uncertainty, according to the analyst's assessment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 27 analysts, the average target price for Global Payments Inc (GPN, Financial) is $118.56 with a high estimate of $194.00 and a low estimate of $65.00. The average target implies an upside of 70.69% 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 34 brokerage firms, Global Payments Inc's (GPN, Financial) average brokerage recommendation is currently 2.4, 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 $124.19, suggesting a upside of 78.79% 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.
