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On Wednesday, Shift4 Payments (NYSE:FOUR) stock received an upgrade from Benchmark analysts, moving from a "Hold" to a "Buy" status. The new price target set by the firm is $111.00, indicating a positive outlook for the company’s financial performance. The stock, currently trading at $89.86, has demonstrated strong momentum with a 12% gain in the past week and an impressive 55% return over the last year, according to InvestingPro data.
The upgrade comes after a period of notable movement in the company’s stock price. Shift4 Payments shares had experienced a significant increase on Tuesday, yet they remained almost 29% below their peak level from February 18, 2025. The new price target is based on a multiple of 23 times the firm’s forecasted adjusted earnings per share of $4.89 for the fiscal year 2025. InvestingPro analysis suggests the stock is currently undervalued, with analyst targets ranging from $80 to $150, while the company maintains a "GREAT" financial health score.
The analysts at Benchmark have expressed confidence in the resilience of Shift4 Payments’ platform. In their assessment, the platform’s strength may have been underestimated by the market, and as this realization spreads among investors, the stock is expected to continue its upward trajectory.
The company’s recent rally is seen as just the beginning, with Benchmark analysts suggesting that the stock has the potential to sustain its growth. They believe that as the market gains a better understanding of the true robustness of Shift4 Payments’ offerings, the share price will reflect this improved perception.
Investors and market watchers will be observing Shift4 Payments’ performance closely in the coming months, especially in light of the Benchmark’s optimistic price target and stock rating upgrade. The company’s next steps and financial results will be crucial in determining whether the stock can indeed reach the levels projected by the analysts.
In other recent news, Shift4 Payments Inc reported impressive financial results for the first quarter of 2025, with earnings per share (EPS) reaching $1.07, surpassing the forecast of $0.76. The company also exceeded revenue expectations, reporting $368.5 million compared to the projected $364.37 million. Following this strong performance, Shift4 raised its full-year guidance for revenue and EBITDA, indicating continued confidence in its growth trajectory. Additionally, the company highlighted its strategic acquisition of Global Blue, a payment platform with significant potential for revenue synergies, expected to contribute $80 million by 2027. Shift4 also announced new product innovations and strategic partnerships, which are part of its ongoing efforts to strengthen its market position. The firm Oppenheimer noted the competitive environment in international markets but acknowledged Shift4’s strategic edge. Meanwhile, Wolfe Research appreciated the company’s resilience amid uncertain macroeconomic conditions. These developments underscore Shift4’s strategic focus and adaptability in a dynamic market environment.
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