Shift4 Payments stock price target lowered to $120 at Raymond James

Investing.com - Raymond James lowered its price target on Shift4 Payments (NYSE:FOUR) to $120 from $126 while maintaining a Strong Buy rating ahead of the company’s third-quarter earnings report. The stock, currently trading at $79.37, has seen its price decline 23.5% year-to-date, according to InvestingPro data.

The adjustment reflects anticipated weakness in Global Blue, prompting Raymond James to reduce its third-quarter revenue estimates by approximately 1.5% and adjusted EBITDA estimates by about 2.0%.

The firm also adopted a more conservative approach to fiscal 2026 and 2027 Global Blue estimates, resulting in a 2-3% reduction in revenue and adjusted EBITDA forecasts across both years.

Raymond James noted that while weakness from Global Blue in the first quarter post-deal close "is not ideal," the core business is performing as expected, and the firm remains optimistic about longer-term revenue synergies, including DCC and cross-selling to Global Blue merchants.

The firm continues to view Shift4’s risk/reward profile favorably, with the stock trading at approximately 12 times fiscal 2026 free cash flow and 10 times fiscal 2027 free cash flow, though it acknowledged that "patience will be required" as management needs to execute for several quarters before the stock and multiple can increase significantly. According to InvestingPro’s Fair Value analysis, Shift4 appears undervalued at current levels, with a P/E ratio of 34.05 relative to its growth potential.

In other recent news, Shift4 Payments has made significant strides with the completion of its acquisition of Global Blue Group Holding AG, finalizing a squeeze-out merger that results in Global Blue becoming a wholly-owned subsidiary. This merger was approved by Global Blue shareholders, with the remaining shares converted to cash. Furthermore, Shift4 Payments has amended its credit agreement with Citizens Bank, increasing its settlement line of credit to $125 million and extending the maturity date to September 2026.

On the analyst front, Mizuho has lowered its price target for Shift4 Payments to $100, citing international challenges, particularly in Japan. Wolfe Research also adjusted its price target for the company to $110, maintaining an Outperform rating. These adjustments come as the company prepares for its third-quarter 2025 earnings report. Additionally, founder and executive chairman Jared Isaacman has shown confidence in the company by purchasing a significant number of shares, as disclosed in recent regulatory filings.

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