Shift4 Payments upgraded to Equal Weight from Underweight at Morgan Stanley

Morgan Stanley upgraded Shift4 Payments to Equal Weight from Underweight with a price target of $57, up from $52. The analyst sees the stock’s current valuation as “more appropriate and reflective” of the company’s strong volume trends, balanced with its long-term revenue challenges related to falling spreads. Shift4’s current valuation still reflects strong expected volume trends and opportunity for upside from new enterprise wins, momentum with the SkyTab rollout, and additional acquisitions, but now better accounts for ongoing take rate compression that can result in slowing revenue growth, the analyst tells investors in a research note.