Global Payments (GPN) Metrics To Improve Post TSYS Merger - Baird

Baird analyst David Koning reiterated an Outperform rating and $203.00 price target on Global Payments (NYSE: GPN) after receiving EU regulatory approvals and closing the acquisition. The analyst sees revenue opportunities in new segments including Merchant Solutions (~70% of revenue), Issuer Solutions (~20%), and Consumer Solutions (~10%).

The analyst believes the cost savings opportunities could lead to multiple expansion stating "GPN's cost synergies from TSS are ~7% of annual TSS revenue (FISV/FIS ~9-10%). We expect all to have synergy upside, but GPN could possibly have the most". He went on to say "GPN could get to accretive actions quickly, as it is levered ~2.5X exiting 2019 (FIS/FISV ~3.5X)".

For an analyst ratings summary and ratings history on Global Payments click here. For more ratings news on Global Payments click here.

Shares of Global Payments closed at $164.35 yesterday.

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