Global Payments’ Strategic Acquisition of Worldpay: A Catalyst for Growth and Synergy Realization

Bank of America Securities analyst Jason Kupferberg maintained a Buy rating on Global Payments (GPN – Research Report) yesterday and set a price target of $122.00.

Jason Kupferberg has given his Buy rating due to a combination of factors, including the promising outlook for Global Payments’ upcoming acquisition of Worldpay. The acquisition is expected to bring significant revenue and cost synergies, with projections of $200 million in revenue synergies and $600 million in cost synergies within three years of closing the deal. This is anticipated to result in mid-teens EPS growth and substantial free cash flow improvements, reaching $5 billion by 2028.
Furthermore, the company’s stable performance in its Merchant business and the positive growth trajectory of Worldpay’s e-commerce and enterprise segments bolster confidence in Global Payments’ future prospects. The company’s strategic initiatives, including the rollout of the Genius POS offering and the rebuilding of Worldpay’s sales capacity, are expected to drive further growth. Kupferberg’s rating also considers the company’s strong financial position, with expectations of significant share repurchases and a manageable net leverage target post-transaction.

In another report released today, KeyBanc also maintained a Buy rating on the stock with a $90.00 price target.