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Investing.com - RBC Capital has raised its price target on Global Payments (NYSE:GPN) to $95.00 from $93.00 while maintaining a Sector Perform rating. The company currently trades at a P/E ratio of 11.19, significantly below RBC’s target, with InvestingPro data suggesting the stock is undervalued compared to its Fair Value.
The price target increase follows what RBC described as "solid results" from Global Payments , which has reiterated its guidance while demonstrating progress on key strategic initiatives. Despite posting revenue growth of nearly 14% over the last twelve months, the stock has declined 28% year-to-date, creating a potential opportunity for investors according to InvestingPro, which offers additional insights in its comprehensive Pro Research Report.
RBC highlighted significant momentum in the company’s Genius platform, noting strong traction with improvements in new location sales, deal sizes, and recurring revenue since its launch.
The financial services firm expects additional growth to come from international expansion of the Genius platform, enabling indirect sales channels, and plans to increase the direct sales force by approximately 500 representatives.
RBC also noted that Global Payments now expects its Worldpay acquisition to close in the first quarter of 2026, earlier than the previous expectation of first half 2026.
In other recent news, Global Payments Inc. reported its third-quarter 2025 earnings, revealing an adjusted earnings per share (EPS) of $3.26, which surpassed the forecast of $3.23. However, the company experienced a revenue shortfall, with figures reaching $2.01 billion compared to the expected $2.41 billion. Meanwhile, Global Payments has filed financial statements related to its planned acquisition of Worldpay Holdco, LLC, and the divestiture of its Issuer Solutions business. This transaction, announced earlier in the year, involves acquiring Worldpay from Fidelity National Information Services, Inc. and affiliates of GTCR LLC, with both transactions pending regulatory approvals.
Additionally, analyst firm Mizuho raised its price target for Global Payments to $125, citing strong free cash flow (FCF) and growth in its merchant business. Raymond James also increased its price target to $105, following the company’s third-quarter results, which included a 1% revenue upside and free cash flow of $784 million, exceeding estimates by 15%. Both firms maintained an "Outperform" rating for the company. These developments are indicative of Global Payments’ strategic initiatives and operational achievements.
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