Monness analyst Gustavo Gala reiterated a Buy rating on Global Payments (GPN – Research Report) yesterday and set a price target of $130.00.
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Gustavo Gala has given his Buy rating due to a combination of factors including Global Payments’ strategic moves and financial projections. The company has maintained a Buy rating despite slightly reducing estimates, with a price target set at $130. This valuation is based on a multiple of the company’s EBITDA and assumes a steady growth trajectory. The recent quarterly results aligned with expectations, showing consistent growth in key areas such as merchant and issuer solutions, which supports the company’s guidance for revenue and earnings growth.
Furthermore, Global Payments is focused on driving growth through initiatives like the launch of Genius and improvements in their salesforce. The company is also undergoing significant transactions, including the sale of Issuer Solutions and the acquisition of Worldpay, which are expected to simplify operations and potentially enhance returns on invested capital over time. These strategic decisions, coupled with stable transaction growth and a focus on expanding margins, underpin Gala’s positive outlook for the stock.
According to TipRanks, Gala is an analyst with an average return of -1.1% and a 42.42% success rate. Gala covers the Technology sector, focusing on stocks such as Remitly Global, Strategy, and International Money Express.
In another report released yesterday, KeyBanc also maintained a Buy rating on the stock with a $90.00 price target.