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Investing.com - TD Cowen has raised its price target on Global Payments (NYSE:GPN) to $92.00 from $84.00 while maintaining a Hold rating on the stock.
The price target increase reflects a multiple of 7.8x TD Cowen’s updated fiscal year 2 EBITDA estimate for the payment processing company.
TD Cowen noted that Global Payments has demonstrated "good execution on its base transformation plan" and that investor concerns about standalone execution risk have softened, as evidenced by positive stock reaction to in-line second-quarter results. This assessment aligns with InvestingPro’s Financial Health Score of "GOOD," with 15 analysts recently revising their earnings estimates upward for the upcoming period.
Despite the price target increase, the firm remains cautious about execution risks related to the Worldpay integration and believes there are "more attractive opportunities in payments."
TD Cowen viewed positively Global Payments’ accelerating merchant revenue growth and indications that the company may consider further asset sales as it works to simplify its operating model and unify global operations.
In other recent news, Global Payments Inc. reported its second-quarter earnings for 2025, revealing a notable performance with an earnings per share (EPS) of $3.10, which exceeded analysts’ expectations of $3.05. Despite this earnings beat, the company’s adjusted net revenue grew by 5% on a constant currency basis, reaching $2.36 billion. However, this revenue figure was slightly below the anticipated amount, resulting in a revenue surprise of -16.95%. This earnings announcement led to a positive reaction from investors, even though the revenue did not meet expectations. Analysts had projected a higher revenue, but the company’s performance still generated a favorable response. These developments are part of the recent updates surrounding Global Payments. The company’s financial outcomes continue to be closely monitored by investors and analysts alike.
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