BTIG analyst Andrew Harte has maintained their neutral stance on GPN stock, giving a Hold rating on April 17.
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Andrew Harte has given his Hold rating due to a combination of factors surrounding Global Payments’ recent strategic moves. The company announced a significant acquisition of Worldpay and a divestiture of its Issuer Solutions segment, aiming to streamline its operations and focus on merchant solutions. While these transactions are expected to enhance Global Payments’ capabilities and potentially accelerate growth, they also introduce execution risks, particularly concerning the realization of projected synergies.
Furthermore, the shift in strategy involves increasing leverage, which may concern investors who were previously attracted to the company’s capital return approach. The current uncertain macroeconomic environment adds another layer of complexity to the situation. These elements combined have led to a cautious outlook, justifying a Hold rating as the market assesses the long-term benefits versus the immediate challenges posed by these strategic changes.
GPN’s price has also changed moderately for the past six months – from $101.620 to $69.460, which is a -31.65% drop .