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On Wednesday, Keefe, Bruyette & Woods maintained their Market Perform rating on Global Payments (NYSE:GPN) shares and increased the price target to $81 from $78. The adjustment reflects a positive outlook based on the company’s first-quarter results, which met preliminary expectations and displayed favorable volume trends compared to its peers.
The research firm highlighted stable underlying trends in Global Payments’ business, noting that they align with the expectations set earlier in the year. Keefe, Bruyette & Woods analysts also pointed out that the company’s management is confident in its transformation strategy, which appears to be unfolding as planned.
A significant point of interest for the analysts is the strategic importance of the Worldpay deal. They emphasized that while the first-quarter performance was solid, with an impressive gross margin of 62.87%, the integration and synergy delivery of the Worldpay acquisition is a pivotal aspect of the investment case for Global Payments’ stock. The firm acknowledges that there is considerable execution risk associated with this strategic move. InvestingPro subscribers can access detailed analysis of the company’s integration progress and 8 additional exclusive ProTips about Global Payments’ future prospects.
The raised price target to $81 is based on the higher forecasted earnings per share (EPS) for the fiscal year 2026. The analysts’ commentary suggests that despite the potential risks, there is an expectation of growth and a successful strategy implementation.
Global Payments’ first-quarter results, which were in line with the preliminary expectations, and the positive volume trends relative to its competitors, have contributed to the firm’s decision to adjust the price target. The focus for investors and analysts alike remains on how the company will manage the Worldpay deal and whether the anticipated synergies will materialize as part of Global Payments’ broader transformation strategy.
In other recent news, Global Payments Inc. reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $2.82, compared to the forecasted $2.73. Revenue for the quarter was in line with projections at $2.2 billion, demonstrating over 5% growth in constant currency adjusted net revenue. The company’s strategic initiatives, including the forthcoming Worldpay acquisition, are anticipated to enhance growth opportunities. Global Payments has reaffirmed its foreign exchange-adjusted revenue and EPS forecasts for fiscal year 2025, despite a modest upward revision due to the weaker dollar.
The acquisition of Worldpay remains a focal point, with management discussing potential revenue and operating expense synergies during the earnings call. JPMorgan analysts have expressed caution about predicting accelerated growth for the merged entity, citing the complex nature of integration. However, Raymond (NSE:RYMD) James raised its price target for Global Payments from $81.00 to $92.00, maintaining an Outperform rating, indicating optimism about the company’s long-term financial goals and synergy benefits from the Worldpay acquisition.
JPMorgan, on the other hand, adjusted its price target for Global Payments to $85.00 from $115.00, maintaining a Neutral rating. The firm noted stable transaction and volume trends within the SMB Merchant sector and slight improvements in the Issuer area. Analysts and investors are keenly observing the upcoming JPMorgan Global TMC Conference for further insights into Global Payments’ strategic direction and the potential benefits of the Worldpay acquisition.
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