- Global Payments (GPN, Financial) is set to acquire Worldpay, boosting its market position.
- The strategic deal involves a substantial transaction with JPMorgan Chase and FIS.
- Analysts predict a significant upside potential for GPN stock.
Global Payments (GPN) has made a bold strategic move by entering into a noteworthy agreement with JPMorgan Chase to acquire Worldpay. This acquisition will be executed by purchasing Fidelity National Information Services' (FIS) 45% stake for $6.6 billion before tax. Additionally, Global Payments will transfer its Issuer Solutions business to FIS for a substantial $12 billion. These developments underscore a pivotal shift in the company's strategic direction.
Wall Street Analysts' Predictions
The outlook for Global Payments Inc (GPN, Financial) appears promising, as reflected in the one-year price targets set by 27 seasoned analysts. The average target price is pegged at $118.56, with optimistic projections reaching up to $194.00 and conservative estimates at $65.00. This average target suggests a remarkable potential upside of 71.12% from the current market price of $69.29. For more insights, visit the Global Payments Inc (GPN) Forecast page.
Further supporting this positive outlook, the consensus recommendation from 34 brokerage firms places Global Payments Inc (GPN, Financial) in an "Outperform" category, with an average recommendation score of 2.4. This scoring system ranges from 1 to 5, where 1 denotes a Strong Buy and 5 signifies a Sell.
Assessing GPN's Valuation Potential
According to GuruFocus estimates, the projected GF Value for Global Payments Inc (GPN, Financial) over the next year stands at $124.20. This figure hints at an impressive 79.26% upside from the current stock price of $69.285. The GF Value represents GuruFocus' valuation of the intrinsic fair value at which the stock should ideally trade. This estimation incorporates historical trading multiples, past business growth, and future performance projections. For a comprehensive analysis, explore the Global Payments Inc (GPN) Summary page.
By strategically acquiring Worldpay and leveraging its Issuer Solutions business, Global Payments is positioning itself for significant growth, making it an enticing prospect for investors looking to capitalize on the potential upside.
