Analyst James Faucette from Morgan Stanley maintained a Hold rating on Shift4 Payments and decreased the price target to $86.00 from $92.00.
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James Faucette has given his Hold rating due to a combination of factors impacting Shift4 Payments. The company is facing challenges, particularly in its third-quarter revenue and EBITDA estimates, due to headwinds such as tough comparisons in Japanese luxury travel and unexpected depreciation in recent acquisitions. These factors have led to a recalibration of revenue growth assumptions, with a notable impact from the Global Blue segment.
Despite stable core business trends, with slight contraction in restaurant sales and flat to slightly positive trends in hotels, there are concerns about slower volume growth and lower spreads in the latter half of the year. Additionally, there is a need for more consistent updates on key initiatives, such as cross-selling progress and synergy realization from acquisitions, to rebuild confidence in the medium-term outlook. These elements contribute to the Hold rating, as the path to outperformance appears more challenging, though Shift4 is expected to meet at least the midpoint of its FY25 targets.
In another report released on October 1, KBW also maintained a Hold rating on the stock with a $90.00 price target.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is neutral on the stock.