William Blair analyst Andrew Jeffrey has reiterated their neutral stance on GPN stock, giving a Hold rating on July 22.
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Andrew Jeffrey’s rating is based on a combination of factors that suggest a cautious approach towards Global Payments. The company is showing some improvement in merchant sales and benefiting from a revamped sales compensation plan and its Genius offering. However, the domestic software-integrated POS market is becoming increasingly competitive, and traditional fintech valuations are converging. This competitive environment suggests that investors might find better opportunities in other fintech companies with stronger commercial momentum.
Despite Global Payments’ efforts to innovate with its Genius platform, Jeffrey believes these advancements may be insufficient and delayed compared to competitors like Clover, Square, and Shift4. Additionally, the restaurant POS market is intensifying with investments from companies like Toast. Although Global Payments is realigning its salesforce and incentives, these initiatives may not sustain long-term organic revenue growth. The acquisition of Worldpay offers some industrial logic and scale benefits, but it does not address Global Payments’ existing technology challenges.
Jeffrey covers the Technology sector, focusing on stocks such as Fiserv, Corpay Inc, and WEX. According to TipRanks, Jeffrey has an average return of 14.4% and a 64.02% success rate on recommended stocks.
In another report released on July 22, Truist Financial also maintained a Hold rating on the stock with a $83.00 price target.