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Investing.com - UBS has lowered its price target on Shift4 Payments (NYSE:FOUR) to $115 from $125 while maintaining a Buy rating on the payment processor’s stock. The stock, currently trading at $86.43, has experienced significant volatility recently, with InvestingPro data showing a 17% decline in the past week alone. Despite the recent pullback, analysts maintain price targets ranging from $90 to $140, suggesting potential upside.
The adjustment follows Shift4’s second-quarter results, which came in slightly below Street expectations for end-to-end payment volume, though the company maintained its full-year guidance including the Global Blue contribution. The unchanged guidance suggests a deceleration in second-half year-over-year growth from approximately 29% in the first half to around 22% in the second half at the midpoint of the implied organic forecast. According to InvestingPro data, the company has maintained strong fundamentals with a 27.39% revenue growth and a healthy gross profit margin of 30.02%. The company’s financial health score is rated as GOOD, supported by robust operational metrics.
UBS noted that no single large enterprise client implementation went live during the second quarter, though Shift4’s backlog remains healthy at over $35 billion. The timing and ramp of enterprise volumes alongside cross-sell success represent the largest factors that could affect the company’s end-to-end volume guidance, with Shift4 specifically mentioning lower enterprise ramp in the second quarter compared to the first quarter.
For Global Blue, Shift4 expects $334 million of gross revenue in the second half of 2025, translating to $300 million of gross revenue less network fees contribution and $125 million of EBITDA, split evenly between the third and fourth quarters. This suggests approximately 17% revenue growth for Global Blue, consistent with its high-teens growth over recent quarters, though currency headwinds may impact international shopper ticket sizes.
The company also announced that CFO Nancy Disman will retire at year-end and will be replaced by board member Chris Cruz of Searchlight Partners, who has served on Shift4’s board since 2016. For investors seeking deeper insights into Shift4’s financial health and growth prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, available as part of its coverage of over 1,400 US equities.
In other recent news, Shift4 Payments Inc . disclosed its Q2 2025 financial results, which included an earnings per share (EPS) of $1.10, falling short of the anticipated $1.22. Despite this EPS miss, the company posted a substantial revenue surprise, reporting $966.2 million compared to the forecast of $409.79 million. This notable revenue achievement highlights the company’s ability to exceed market expectations in terms of sales. The earnings announcement comes amid a broader market context, with some investor concern reflected in pre-market trading. Analyst reactions to these results have yet to be detailed, but the revenue performance may influence future assessments. These developments indicate a mixed financial picture for Shift4 Payments, with strong revenue performance offsetting the EPS shortfall. Investors will likely be watching for further updates and analyst opinions in the coming days.
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