RBC maintains Shift4 Payments stock Outperform rating, $154 target

On Tuesday, RBC Capital Markets sustained its positive stance on Shift4 Payments (NYSE:FOUR), upholding an Outperform rating and a $154.00 price target, well above the current stock price of $91.33. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, with analyst targets ranging from $100 to $154. The firm’s analysts highlighted the acquisition of Global Blue as a significant step for Shift4 Payments, citing its potential to boost growth in the retail sector and aid in expanding the company’s international presence.

Shift4 Payments’ strategic move to acquire Global Blue is expected to open doors to over 75,000 retailers and facilitate expansion into new regions, especially in the Asia-Pacific (APAC) area. With a current market capitalization of $8.15 billion and last twelve months EBITDA of $487.4 million, this acquisition is seen as a catalyst that could substantially increase the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization).

According to RBC Capital’s analysis, Global Blue is projected to contribute approximately $221 million in adjusted EBITDA in calendar year 2025, with subsequent increases to $243 million in 2026 and $267 million in 2027. These figures represent an incremental rise of roughly 26% and 27% over RBC’s previous adjusted EBITDA estimates for Shift4 Payments for the respective years. The company has already demonstrated strong growth momentum, with revenue increasing by 29.86% over the last twelve months. InvestingPro subscribers can access 8 additional key insights about Shift4’s growth potential and financial health, which currently rates as GOOD according to comprehensive analysis.

The firm’s analysts believe that the integration of Global Blue will not only provide Shift4 Payments with a stronger foothold in the retail sector but also enhance its ability to penetrate markets where it currently lacks presence. The positive outlook reflects confidence in the company’s strategic initiatives and their potential to deliver substantial financial benefits in the coming years. For detailed analysis and comprehensive insights, investors can access the full Pro Research Report available exclusively on InvestingPro, covering all crucial aspects of Shift4’s business model and growth trajectory.

The maintained Outperform rating and price target signal that RBC Capital Markets views Shift4 Payments as well-positioned to capitalize on its recent acquisition and to continue its trajectory of growth. The analysts’ commentary underscores the anticipated value that Global Blue is expected to add to Shift4 Payments’ operations and financial performance.

In other recent news, Shift4 Payments announced its intention to acquire Global Blue for an enterprise value of $2.5 billion. This acquisition is expected to extend Shift4’s reach in the global payment market. Global Blue recently reported a 20% increase in revenue to €131 million ($137 million) for its fiscal third quarter and a 31% rise in adjusted EBITDA to €52 million ($55 million). Shift4 Payments also disclosed its fourth-quarter earnings, showing significant year-over-year growth with net revenue up by 50% and adjusted EBITDA by 51%. However, the earnings report fell slightly short of analysts’ expectations and consensus. DA Davidson adjusted its price target for Shift4 Payments to $124, maintaining a Buy rating, while Keefe, Bruyette & Woods raised their price target to $125, citing strong growth drivers. Benchmark analysts maintained a Hold rating following the company’s earnings and acquisition announcement. These developments reflect a strategic expansion move by Shift4 Payments, aiming to enhance its international market presence.

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