Global Payments (GPN) Draws Mixed Analyst Views Following Worldpay Deal and Strategic Shift

Global Payments Inc. (NYSE:GPN) is one of the best affordable long term stocks to buy according to hedge funds. On January 27, Cantor Fitzgerald started covering Global Payments Inc. (NYSE:GPN) with a Neutral rating and set a price target of $80. The firm pointed out that Global Payments has changed a lot recently, becoming a “pure-play merchant acquirer” after buying Worldpay and selling its Issuer Solutions business to FIS.

Cantor Fitzgerald highlighted Global Payments’ approach, the ‘divest and refresh strategy,’ which entails selling non-synergistic business segments and consolidating internal platforms to enhance customer service. This strategy, Cantor Fitzgerald said, seems to be working, as the company reported 22.33% revenue growth over the last twelve months. In this light, Cantor set the price target based on five times its estimate for Global Payments’ FY2027 earnings per share of $15.09, plus a discounted cash flow analysis.

In a different update, on January 21, UBS reaffirmed its Neutral stock rating on Global Payments and retained a $93 price target for the shares. UBS based the move on Global Payments’ merger with Worldpay.

The investment bank said that the merger expands Global Payments’ reach into new geographic regions, specifically highlighting Japan, France, the Nordics, the Middle East, and Africa. And that the enlarged company’s enhanced scale could provide pricing advantages and increased investment capabilities versus some competitors. However, UBS warned of potential execution risks in the medium term, particularly regarding platform integration.

Global Payments Inc. (NYSE:GPN) is a financial technology company that provides payment processing, software solutions, and merchant services to businesses across more than 100 countries. Its operations include integrated payments, point-of-sale software, and cloud-based solutions for industries such as retail, healthcare, education, and hospitality.

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Disclosure: None. This article is originally published at Insider Monkey.