Shift4 Payments initiated with an Equal Weight at Stephens

Stephens initiated coverage of Shift4 Payments with an Equal Weight rating and $80 price target. After the 27% year-to-date run-up in the stock, Shift4’s premium valuation fairly reflects the above peer growth and margin profile as well as the firm’s confidence in the company’s FY23 outlook, the analyst tells investors in a research note. Stephens adds that while the internal growth levers and up-market focus add a degree of durability to the company’s business model, the firm sees risk-reward on the stock as balanced given the economic sensitivity of Shift4’s verticals.