Morgan Stanley says Shift4 reportedly rejecting bids as too low ‘not a surprise’

Morgan Stanley analyst James Faucette notes press outlets including Bloomberg and Reuters reported that Shift4 Payments management told its staff that they received multiple buyout offers above the current share price, but that buyout bids failed to value the company adequately, which the firm calls “a somewhat unsurprising update.” If Shift4’s stock keeps at least some of its acquisition-news related premium “above the mid-60s range,” the company should push to do another convertible offering to replace the existing one coming due in December 2025 that they don’t have sufficient cash to pay down, argues the analyst, who keeps an Equal Weight rating and $70 price target on Shift4 shares.