Global Payments: Hold Rating Amidst Worldpay Merger Uncertainty and Execution Risks

Analyst Bryan Bergin of TD Cowen maintained a Hold rating on Global Payments (GPN – Research Report), boosting the price target to $84.00.

Bryan Bergin’s rating is based on several factors influencing Global Payments’ current market position and future outlook. The company has demonstrated consistent consumer stability, aligning with broader trends in the fintech and payments sector, which supported a solid first-quarter performance and reaffirmed its outlook for 2025. However, the recent announcement of the Worldpay transaction has put pressure on the stock, leading to increased investor sensitivity due to the scale of the merger and the changes expected in 2025 within its core merchant business.
Despite the potential synergies and revenue growth targets set for 2028, there are concerns about the complexity and execution risks associated with the merger. While Global Payments has provided assurances about the minimal overlap and potential benefits of the combined businesses, the long timeframe to finalize the deal and achieve the projected synergies creates uncertainty. This uncertainty, coupled with modest adjustments to revenue and earnings estimates, suggests that many investors may adopt a cautious ‘wait and see’ approach, resulting in a Hold rating for the stock.