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On Wednesday, BTIG analyst Hal Goetsch increased the price target for Shift4 Payments (NYSE:FOUR) shares, taking it to $140.00 from the previous $118.00, while reiterating a Buy rating for the stock. According to InvestingPro data, the stock has demonstrated remarkable momentum with a 60.9% return over the past six months, and currently trades near its 52-week high of $123.25. Goetsch’s optimism is tied to the company’s upcoming Investor Day, scheduled for next week on February 18, when Shift4 Payments is also set to report its fourth-quarter results for 2024.
The event, which will be held at the Fontainebleau Las Vegas, offers a unique opportunity for investors to witness Shift4 Payments’ transaction processing capabilities firsthand, as they are utilized throughout the hotel’s various services. The analyst anticipates the company to project at least 20% organic growth for fiscal year 2025, with continued strong performance into the following years.
Goetsch’s forecast for Shift4 Payments is underpinned by several growth drivers, including the company’s strong position in the hotel industry, success with SkyTab in restaurants, plans for international expansion, and opportunities to further penetrate the existing customer base. The stock has shown robust performance, with a year-to-date increase of 13% following a 40% rise in fiscal year 2024. InvestingPro analysis reveals impressive revenue growth of 31.4% in the last twelve months, with the company maintaining strong financial health scores and a current ratio of 2.98, indicating solid liquidity management. For deeper insights into Shift4’s growth metrics and 12+ additional ProTips, consider exploring the comprehensive Pro Research Report available on InvestingPro.
The analyst’s confidence in Shift4 Payments extends beyond the near term, as he expects the company to generate over $600 million in annual free cash flow to equity by fiscal year 2026. This projection suggests a free cash flow yield of 5.6% based on current valuations. With these positive indicators, the raised price target reflects BTIG’s view of the stock’s continued potential for growth. The company’s current market capitalization stands at $10.6 billion, with analyst targets ranging from $70 to $150 per share, reflecting diverse market perspectives on its valuation potential.
In other recent news, Shift4 Payments and Block Inc. are among companies that may see significant developments. An RBC analyst predicts a boost in technology investments by American small and medium-sized businesses (SMBs), which could benefit companies like Block Inc. and Shift4 Payments. This optimism is attributed to a slowdown in inflation growth, reduced interest rates, and the expected benefits from incoming fiscal policies. Block’s Square segment and Shift4 Payments are expected to see growth due to increased software penetration and investments in go-to-market strategies.
Shift4 Payments has also been the subject of multiple analyst notes. Keefe, Bruyette & Woods maintained their Outperform rating, expressing confidence in the company’s ability to handle a leadership transition. This comes in light of the news that CEO Jared Isaacman has been nominated to serve as the Administrator of NASA. However, Benchmark downgraded the company from Buy to Hold following the announcement, citing uncertainties about the company’s future execution of its strategic plans.
Raymond (NSE:RYMD) James and DA Davidson maintained their Outperform and Buy ratings respectively for Shift4 Payments, despite the CEO’s potential departure. Both firms expressed confidence in the company’s management team and future prospects. These are the recent developments to note, without any speculation or judgments about the future of these companies.
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