Stephens Upgrades Shift4 Payments (FOUR) to Overweight, 'Short Report Creates Favorable Entry'

Stephens analyst Charles Nabhan upgraded Shift4 Payments (NYSE: FOUR) from Equal Weight to Overweight with a price target of $80.00.

The analyst comments "We are upgrading FOUR to Overweight from Equal-Weight, as we see minimal validity to the Blue Orca short report which has created an attractive entry point for shares. Despite the constructive view of mgmt/fundamentals outlined in our 4/13 initiation, we had previously concluded that: 1) the YTD advance in shares reflected comfort around the '23 guide, 2) the macro risk associated w/ restaurant/hotels warranted a degree of caution. Following a 12% decline in the past week, however, we believe the risk/reward has improved considerably and that shares should revert to a 14x EBITDA multiple (vs. 12x current). We see the release of 1Q earnings (5/4) and closing of Finaro (in 2Q) as upcoming catalysts, and view '23/'24 est (notably the '24 margin of 45%) as conservative in light of new vertical contribution to margin/vol. We are adj our '23/'24 est. to $1.51/$2.83 from $1.44/$2.72 and maintaining our $80 price target."

For an analyst ratings summary and ratings history on Shift4 Payments click here. For more ratings news on Shift4 Payments click here.

Shares of Shift4 Payments closed at $62.59 yesterday.

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