TD Cowen lifts Global Payments stock target to $84, holds rating

Published 07/05/2025, 16:52
TD Cowen lifts Global Payments stock target to $84, holds rating

On Wednesday, TD Cowen made an adjustment to the price target for Global Payments Inc. (NYSE:GPN), increasing it from $78.00 to $84.00, while maintaining a Hold rating on the stock. According to InvestingPro data, analyst targets for the stock range from $65 to $172.11, reflecting diverse market opinions. The stock appears undervalued based on InvestingPro’s Fair Value analysis. The adjustment follows the company’s first-quarter results, which were consistent with its plans and supported the reaffirmed outlook for the calendar year 2025.

Bryan Bergin, an analyst at TD Cowen, noted that Global Payments reported a solid performance for the quarter, reflecting stability in consumer behavior that was in line with the trends observed across the Fintech and Payments sector. This performance has helped to keep the company on track with its previously stated financial goals. The company maintains a healthy financial position with an InvestingPro Financial Health score of "GOOD," supported by strong profitability metrics including a 62.9% gross profit margin.

In the wake of recent market pressures, Global Payments has focused on addressing concerns related to its potential deal with Worldpay. The company has spent additional time explaining the benefits of the deal, attempting to alleviate investor worries about the proposed transaction.

Despite the positive aspects highlighted by the analyst, the market’s reaction seems to be one of caution. Bergin suggested that many investors are likely to adopt a "wait and see" attitude in the near term, which could result in the company’s shares remaining within a certain trading range for the time being.

The price target increase reflects a modest level of optimism about the company’s future performance, balanced by a recognition of the challenges and uncertainties that lie ahead, particularly concerning the Worldpay deal and its potential impact on the company’s financials and market position. Notably, Global Payments has maintained dividend payments for 25 consecutive years, demonstrating long-term financial stability. For deeper insights into Global Payments’ valuation and future prospects, including additional ProTips and comprehensive analysis, visit InvestingPro.

In other recent news, Global Payments Inc. reported its first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $2.82 compared to the forecasted $2.73, while revenue met projections at $2.2 billion. The company is also in the process of acquiring Worldpay, a move that has been a significant topic of discussion among analysts. KeyBanc raised its price target for Global Payments to $90, maintaining an Overweight rating, based on the potential for higher EPS and favorable macroeconomic conditions. Meanwhile, Keefe, Bruyette & Woods increased their price target to $81, citing a positive outlook from Global Payments’ first-quarter results and the strategic importance of the Worldpay acquisition. Conversely, JPMorgan reduced its price target to $85, expressing caution about the complexities of integrating Worldpay, though it acknowledged stable trends in Global Payments’ business. Additionally, Raymond (NSE:RYMD) James raised its price target to $92, highlighting the potential for the Worldpay integration to boost Global Payments’ mid-term targets and EPS growth. These developments reflect a mixture of optimism and caution among analysts regarding Global Payments’ strategic moves and financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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