© Reuters. Global Payments (GPN) at an ‘attractive entry point’ – BTIG
Global Payments (NYSE:) was initiated with a Buy rating and $135 price target at BTIG on Monday, with analysts stating the company has “achievable expectations.”
The company’s current valuation also leads the firm to believe the stock presents investors with an attractive entry point, leaving room for more upside than downside.
“That said, the market knows all these things, and we think the 10x FY24E P/E multiple is due to challenges in unpacking the components of growth drivers that at times can come across as a black box,” the analysts explained.
“Conviction for our Buy rating comes from tech-enabled revenues that are growing low- to mid-teens, the legacy pieces of the business benefiting from cash-to-digital structural tailwinds, and scale/FCF generation presenting the potential for GPN to return capital to shareholders and pursue accretive M&A (as it has in the past) as leverage reaches normalized levels exiting FY23,” they added.
The BTIG went further, stating that they would consider a higher price target if it becomes clearer that “in addition to strong tech-enabled growth, the legacy…
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