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Investing.com - Benchmark lowered its price target on Shift4 Payments (NYSE:FOUR) to $100.00 from $111.00 on Monday, while maintaining a Buy rating on the payment processing company. The new target still represents a significant 45% upside from the current price of $69.01, with InvestingPro data showing the stock is currently trading below its Fair Value.
The price target reduction follows Shift4’s third-quarter 2025 financial results, which Benchmark described as confirming that the company’s "core engine is still compounding nicely" despite a year of distracting headlines. Indeed, revenue growth remains robust at 23.16% over the last twelve months, with the company maintaining profitability.
Benchmark noted that Shift4’s recent history has been complicated by news about former CEO and current Executive Chairman Jared Isaacman’s fluctuating nomination to serve as NASA administrator, as well as significant cross-border acquisitions. These distractions have contributed to the stock’s volatility, with FOUR down 36.26% year-to-date and 54% from its 52-week high of $127.50.
The research firm highlighted that Shift4 continues to trade at a payment processor multiple rather than the higher software firm valuation given to competitors like Toast, creating what Benchmark views as an "attractive opportunity" for long-term investors. Currently trading at a P/E ratio of 31.89, the company’s valuation metrics suggest a potential disconnect with its growth trajectory.
Benchmark characterized Shift4 as "a great business with a messy narrative," suggesting the current valuation presents a "compelling risk/reward" proposition for investors who appreciate the company’s approach to maximizing and monetizing payment volume. Analyst consensus remains bullish with price targets ranging from $75 to $131, while InvestingPro analysis reveals 10 additional investment tips and a comprehensive Pro Research Report that could help investors navigate this opportunity.
In other recent news, Shift4 Payments reported its third-quarter 2025 earnings, meeting expectations with an earnings per share (EPS) of $1.47, which aligned with forecasts. The company’s revenue slightly exceeded predictions, coming in at $589.2 million compared to the expected $586.57 million. This performance reflects a solid financial standing for the period. Mizuho raised its price target for Shift4 Payments to $102.00 from $95.00, maintaining an Outperform rating, citing the company’s robust results as a positive factor. Meanwhile, Raymond James adjusted its price target to $90.00 from $120.00 but maintained a Strong Buy rating, noting that the company’s adjusted EBITDA was about 2% above consensus. Additionally, net revenue was approximately 1% higher than analyst forecasts, with Global Blue revenues exceeding estimates by about 5%. These developments point to a mixed but generally positive reception from analysts regarding the company’s recent performance.
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