William Blair analyst Andrew Jeffrey has reiterated their neutral stance on GPN stock, giving a Hold rating today.
Andrew Jeffrey has given his Hold rating due to a combination of factors surrounding Global Payments’ recent strategic moves. The company announced a significant transaction involving the sale of its issuer business to FIS and the acquisition of Worldpay. This bold step is seen as a necessary move to revitalize Global Payments’ growth and expand its market position, despite previous years of lackluster performance in organic revenue growth.
While the acquisition of Worldpay is expected to enhance Global Payments’ geographic reach and distribution capabilities, Jeffrey remains cautious about large acquisitions given the company’s history of underperformance. The transaction is considered a watershed moment, but the stock’s current valuation, along with the competitive landscape, suggests that investors should not rush to buy. Instead, Jeffrey favors other companies like Fiserv, Block, and Shift4, which he believes offer better opportunities.
In another report released today, Bernstein also maintained a Hold rating on the stock with a $118.00 price target.