Shift4 Payments stock holds Buy rating, $124 target at DA Davidson

Wednesday, March 19, 2025 – Analysts at DA Davidson have maintained a Buy rating on Shift4 Payments (NYSE:FOUR), with a steady price target of $124.00. The stock, currently trading at $88.09, has seen a 17% decline year-to-date despite posting strong revenue growth of nearly 30% in the last twelve months. According to InvestingPro analysis, the company appears undervalued relative to its growth prospects. The reaffirmation comes following a recent 8K filing where Shift4 Payments disclosed a letter from their Chairman and CEO, Jared Isaacman, to Ethics Officials at NASA. The letter pertains to Isaacman’s nomination for the role of Administrator of NASA. The $6.1 billion market cap company has maintained a robust financial health score of "GOOD" according to InvestingPro metrics.

Jared Isaacman stated his intention to resign from his current roles at Shift4 Payments and its subsidiaries upon confirmation for the NASA position. Additionally, Isaacman plans to decrease his voting power in the company from the current 80% to about 25%, which would align with his ownership stake.

The company’s leadership transition is in line with Isaacman’s previous remarks. This move is part of the necessary steps he would take in the event of his acceptance to lead NASA. Isaacman’s decision is aimed at ensuring compliance with ethical standards and avoiding conflicts of interest as he prepares for the potential new role.

Shift4 Payments is a provider of integrated payment processing and technology solutions. The company has been under Isaacman’s leadership since its inception, and his potential departure marks a significant change in the company’s executive management.

DA Davidson’s analysts have reiterated their confidence in the company’s stock by maintaining the Buy rating and price target. The target suggests a steady outlook for the company’s financial performance, despite the impending high-level management changes. With a P/E ratio of 26.1 and strong fundamentals, detailed analysis available on InvestingPro suggests significant potential upside from current levels.

In other recent news, Shift4 Payments has been in the spotlight with several key developments. The company announced its intention to acquire Global Blue for an enterprise value of $2.5 billion, a move expected to significantly expand its global reach and enhance its service offerings. Global Blue reported a 20% year-over-year revenue increase and a 31% jump in adjusted EBITDA, highlighting its strong financial performance. RBC Capital Markets maintained an Outperform rating on Shift4 Payments with a $154 price target, citing the acquisition’s potential to boost growth in the retail sector and expand the company’s international presence.

Meanwhile, DA Davidson adjusted its price target for Shift4 Payments to $124 from $140, maintaining a Buy rating despite slightly lower-than-expected fourth-quarter earnings and future guidance. The firm noted the potential integration challenges and financial leverage concerns associated with the Global Blue acquisition. Additionally, rumors have emerged regarding Shift4’s potential acquisition of Smartpay, a New Zealand-based POS solutions provider, although no official confirmation has been made. These developments underscore the company’s ongoing strategic initiatives aimed at enhancing its market position through acquisitions.

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