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Investing.com - Jefferies has raised the price target on Global Payments (NYSE:GPN) to $85.00 from $75.00 while maintaining a Hold rating on the stock. Currently trading at a P/E ratio of 13.7x and showing strong fundamentals, InvestingPro analysis suggests the stock is undervalued relative to its Fair Value.
The price target increase follows Global Payments’ organic growth performance that aligned with previous guidance, while improved margins (currently at 62.9% gross profit margin) and foreign exchange factors contributed to an upward revision in the company’s full-year earnings per share outlook. Seven analysts have recently revised their earnings estimates upward, according to InvestingPro data.
Jefferies noted that the merchant growth segment is expected to accelerate in the second half of the year, implying organic foreign exchange neutral growth exceeding 6% compared to 5% in the first half.
This anticipated acceleration is driven by improved salesforce productivity and the rollout of the new Genius point-of-sale system, with management expressing optimism about both initiatives.
The updated guidance continues to assume foreign exchange headwinds in the second half of the year, which Jefferies suggests provides some cushion in the company’s financial projections.
In other recent news, Global Payments Inc. reported second-quarter earnings that exceeded analyst expectations by approximately 1%. The company’s revenue was in line with Street estimates, and it has raised its full-year profit outlook. Following these results, Raymond (NSE:RYMD) James increased its price target for Global Payments to $100 from $92, while maintaining an Outperform rating. The firm highlighted early successes with the rollout of Global Payments’ new Genius POS platform. These developments have been well-received, with the company’s shares rising over 4% in pre-market trading. Analysts and investors are closely monitoring these recent developments.
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