In a report released yesterday, Jason Kupferberg from Bank of America Securities maintained a Hold rating on Shift4 Payments (FOUR – Research Report), with a price target of $124.00.
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Jason Kupferberg’s rating is based on several considerations, including the recent announcement of Shift4 Payments’ acquisition of Global Blue for approximately $2.5 billion, which is their largest to date. Although this acquisition presents a significant cross-sell opportunity, the market reacted with apprehension, reflected in the share price decline. The company’s guidance for 2025, particularly the mid-point, was slightly below market expectations, adding to the cautious sentiment.
Moreover, the transition in leadership and the integration of Global Blue, along with other strategic initiatives, introduce execution risks that cannot be overlooked. While Shift4 Payments anticipates robust growth in gross revenue less network fees (GRLNF) and adjusted EBITDA, these projections depend heavily on successful integration and future acquisitions. Therefore, maintaining a Hold rating seems prudent amidst these uncertainties, especially given the company’s current market performance and the potential challenges ahead.
In another report released today, KBW also maintained a Hold rating on the stock with a $112.00 price target.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FOUR in relation to earlier this year.