Shift4 Payments stock rises as Goldman Sachs reiterates Buy rating

Investing.com - Shift4 Payments (NYSE:FOUR) stock rose after Goldman Sachs reiterated its Buy rating and $95.00 price target on the payment processing company. The stock, currently trading at $76.91, appears undervalued according to InvestingPro analysis, with the company maintaining strong financials including a healthy current ratio of 2.53.

Goldman Sachs maintained its positive outlook following Shift4’s announcement on October 21, 2025, that it had entered negotiations to acquire Worldline’s North American subsidiaries, including several Bambora entities and Worldline SMB US.

The transaction carries an enterprise value of approximately €70 million ($81 million), with the target subsidiaries generating turnover of about €60 million ($70 million) in 2024, representing roughly 2% of Shift4’s gross revenue for that year.

The acquisition would bring approximately 140,000 merchant customers and a distribution network through more than 500 independent software vendors (ISVs) to Shift4’s portfolio, aligning with the company’s historical strategy of acquiring businesses with large gateway merchant customer bases.

Goldman Sachs’ $95 price target is based on a 15x EV/EBITDA multiple on the firm’s estimates for the next four quarters, with the firm noting potential downside risks including weaker macroeconomic conditions, worse-than-expected take rates, and execution challenges in integrating the previously acquired Global Blue business. For deeper insights into Shift4’s valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis including 12 additional ProTips and detailed financial metrics in the Pro Research Report.

In other recent news, Worldline reported third-quarter revenue of €1.149 billion, which was largely in line with expectations, although it marked a 0.8% decline from the previous year. The company also announced plans to divest its North American business, known as Bambora North America. Shift4 has entered exclusive negotiations to acquire these subsidiaries, which would give it access to over 140,000 merchants across the United States and Canada. In related developments, Raymond James lowered its price target for Shift4 Payments to $120, citing anticipated weakness in Global Blue, while maintaining a Strong Buy rating. Mizuho also reduced its price target for Shift4 to $100 due to international headwinds, particularly in Japan. Additionally, Shift4 announced an amendment to its credit agreement with Citizens Bank, increasing the facility to $125 million and extending the maturity date to September 28, 2026. These developments reflect ongoing strategic adjustments and financial planning within both companies.

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