On Tuesday, Susquehanna affirmed a Positive rating on Global Payments (NYSE:GPN) stock with a steady price target of $147.00. The firm maintains its outlook on the company as a leading merchant acquirer and issuer processor, even after significant recent changes such as the acquisition of EVO and the sale of various consumer-facing assets.
The analysis by Susquehanna comes as Global Payments prepares for its Analyst Day on September 24, where the company is expected to provide an in-depth look at its operations.
The firm's commentary reflects on the company's evolution and highlights key growth drivers across its segments. The report draws on historical presentations and financial disclosures to underscore the company's performance and strategic focus areas.
Susquehanna anticipates that the upcoming Analyst Day will offer a closer examination of Global Payments' Merchant asset base, particularly the benefits from the integration of EVO.
The event is also expected to shed light on the company's progress with next-generation point-of-sale solutions that have been previously hinted at.
The Issuer segment, which mainly serves financial institutions, is predicted to continue to be a point of emphasis for Global Payments, barring any announcement of divestiture.
This part of the business has been recognized for its world-class operations and is likely to be a topic of interest during the Analyst Day presentations.
Lastly, Susquehanna expects Global Payments to discuss its strategies for cross-selling B2B services as part of its broader "commerce enablement" strategy. The firm's analysis suggests that these discussions will highlight the company's efforts to raise efficiencies and leverage its assets to drive growth.
In other recent news, Global Payments Inc. reported a 6% increase in adjusted net revenue for the second quarter, reaching $2.32 billion. The company's Merchant Solutions segment saw an 8% increase to $1.8 billion, while the Issuer Solutions segment experienced a 4% rise to $527 million.
This growth was largely driven by the Merchant Solutions and Issuer Solutions segments. BMO Capital and Stephens adjusted their price targets for Global Payments, reflecting recent developments and earnings results. TD Cowen maintained a Buy rating on Global Payments, highlighting the upcoming Investor Day as a pivotal moment for the company.
The firm expects the company to clarify its strategic plan, provide insights into its merchant growth and margin outlook, and deliver a clear message on its future strategy, potentially leading to a reassessment of the stock's value. These are recent developments that investors should note.
InvestingPro Insights
As Global Payments (NYSE:GPN) gears up for its Analyst Day, investors are keenly anticipating strategic updates and operational insights. InvestingPro data shows a positive outlook with a market capitalization of $28.26 billion. The company's P/E ratio stands at 20.31, which is considered attractive given its adjusted P/E ratio for the last twelve months as of Q2 2024 is forecasted to be 16.83, pointing to potential undervaluation relative to near-term earnings growth. Furthermore, the PEG ratio for the same period is remarkably low at 0.25, indicating that the stock may be undervalued based on its earnings growth.
InvestingPro Tips highlight that analysts are projecting net income growth for Global Payments this year, which aligns with the company's historical ability to maintain dividend payments for 24 consecutive years—a testament to its financial stability. Moreover, Global Payments has shown a strong return over the last three months with a 17.9% price total return, demonstrating recent positive momentum in the market.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/GPN, which delve deeper into the company's financial health and market performance.
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