William Blair analyst Andrew Jeffrey has reiterated their neutral stance on GPN stock, giving a Hold rating today.
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Andrew Jeffrey has given his Hold rating due to a combination of factors that reflect both potential and limitations for Global Payments. While the company is relatively well positioned compared to some of its peers, such as Fiserv, it still faces challenges in achieving revenue and volume growth comparable to more innovative networks. The company’s focus on geographic expansion and product enhancement through its Genius offering is commendable, yet it is unlikely to lead to significant acceleration in long-term organic revenue growth due to intense competition and the constraints of its legacy technology.
Furthermore, Global Payments is making strides in monetizing its Genius capabilities and integrating recent acquisitions, which could support moderate core organic revenue growth. However, these efforts are not expected to drive substantial top-line expansion, as the company continues to grapple with its technological debt. The new compensation plan aimed at fostering more economically beneficial deals is a rational step, but it is not anticipated to significantly alter the company’s growth trajectory. As a result, Andrew Jeffrey maintains a Hold rating, reflecting a cautious outlook on Global Payments’ ability to achieve substantial growth in the face of these challenges.