Shift4 weakness due to market ‘misreading’ MGM cyber-attack, says RBC Capital

RBC Capital believes Shift4 Payments (FOUR) is trading down in sympathy with the cyber-attack on MGM Resorts (MGM) that was announced yesterday. However, the firm believes the market is “misreading” the situation, as MGM the operator is not a client of Shift4, but rather Shift4 processes for BetMGM, which is a mobile sports betting and gaming app operated in partnership with MGM. BetMGM does not appear to have been impacted by the cyber-attack, according to Shift4, so this “should have no impact” on Shift4, according to the analyst, who would be a buyer into the weakness. RBC keeps an Outperform rating and $80 price target on Shift4 shares.