Wall Street sees Isaacman returning to Shift4 after Trump pulls nomination

President Trump said over the weekend that he will withdraw the nomination of departing Shift4 Payments (FOUR) CEO Jared Isaacman to lead NASA, citing a “thorough review of prior associations.” B. Riley sees Isaacman returning to Shift4, and opinion shared by BofA. The latter further believes the move would be well received by investors.

WITHDRAWING NOMINATION: President Donald Trump said via Truth Social on Saturday that, “After a thorough review of prior associations, I am hereby withdrawing the nomination of Jared Isaacman to head NASA. I will soon announce a new Nominee who will be Mission aligned, and put America First in Space. Thank you for your attention to this matter!” 

RETURNING TO SHIFT4: B. Riley reiterates a Buy rating on Shift4 Payments with a $150 price target following the news that the nomination of the company’s former CEO and founder, Jared Isaacman, to lead NASA has been withdrawn by the Trump Administration. The firm says that this are “unexpected news,” as Isaacman’s Senate hearings went well, and he was projected to have support from as many as 70 Senators. Riley believes Isaacman will return to his prior role at Shift4. The return, should it happen, will be positively received by investors, the firm contends.

PROVIDE A BOOST: Also commenting on the announcement, Benchmark notes that Shift4 has yet to make an official announcement regarding Isaacman’s continuation in the CEO role. The firm believes Shift4’s prospects “would be enhanced significantly” by Isaacman’s continued focus on its strategic positioning and that Isaacman’s “re-entry” could give Shift4 “a boost,” says Benchmark, which reiterates a Buy rating and $111 price target on the shares.

WELL RECEIVED RETURN: BofA says the announcement comes as a “surprise” given how far along Isaacman was in the confirmation process, and Shift4 has yet to comment on how this news will impact the company’s ongoing CEO transition plan. While Shift4’s Q1 results came in strong at the helm of President and incoming CEO Tayler Lauber, the firm believes Isaacman’s return to Shift4 would be well-received by investors. Amid the CEO transition uncertainty, pending Global Blue integration, and an ample roster of organic initiatives, BofA is mindful of potential execution risk. The firm maintains a Neutral rating on the shares with a price target of $100.

PRICE ACTION: In afternoon trading, shares of Shift4 are trading up about 1% at $95.31.