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Atlanta, Georgia-based Global Payments Inc. (GPN) provides payment technology and software solutions for card, check, and digital-based payments. With a market cap of $27.8 billion, Global Payments operates through Merchant Solutions and Issuer Solutions segments.
The payments company has substantially underperformed the broader market over the past year. Over the past 52 weeks, GPN dipped 12%, lagging behind the S&P 500 Index’s ($SPX) 26.1% returns. In 2024 alone, GPN is down 14.3% compared to SPX’s 16.5% gains on a YTD basis.
Narrowing the focus, GPN has also underperformed the Blackrock Future Financial And Technology ETF’s (BPAY) 17.4% returns over the past 52 weeks and an 8.9% surge in 2024.
GPN experienced a notable surge of 6.9% following its Q2 earnings release on Aug. 7. The company’s revenues surged 5.5% year over year to $2.3 billion, and adjusted net income grew 9% to $748.8 million. Additionally, its adjusted EPS surged 11.8% annually to $2.93, surpassing Wall Street’s consensus estimates. The momentum continued into the next trading session, with GPN gaining an additional 4.6%.
For the current fiscal year, ending in December, analysts expect Global Payments’ EPS to grow 13.2% year over year to $11.07. Moreover, the company’s earnings surprise history is robust. It beat the consensus estimates in each of the last four quarters. In the last reported quarter, it surpassed the EPS projections by 1.5%.
Among the 32 analysts covering the GPN stock, the consensus rating is “Strong Buy.” That’s based on 23 “Strong Buy” ratings, three “Moderate Buys,” five “Holds,” and one “Strong Sell.”
This configuration has been almost consistent over the past months.
On Aug. 8, Stephens & Co. analyst Charles Nabhan maintained an “Overweight” rating with a price target of $130.
GPN’s mean price target of $139.53 represents a premium of 28.2% from current price levels. The Street-high target of $204 indicates a potential upside of 87.4%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
