Global Payments (GPN) PT Lowered to $85 at JPMorgan

JPMorgan analyst Tien-tsin Huang lowered the price target on Global Payments (NYSE: GPN) to $85.00 (from $115.00) while maintaining a Neutral rating.

The analyst comments "Global Payments’s 1Q results were consistent with the preliminary view given mid-April, while underlying trends were healthy and better than key peer results, driving much of the focus back on the pending Worldpay acquisition. GPN’s volume/transaction trends were encouragingly stable (in SMB Merchant) to slightly improved (in Issuer) vs. last quarter despite calendar headwinds slowing the broader group. Within Merchant, TTM bookings/ARR decelerated somewhat, unsurprising in our view as GPN progresses through its transitional year and ahead of its Genius launch. Given standalone stability, much of the focus this quarter was on the planned Worldpay acquisition announced less than three weeks ago. Management spoke in greater detail around the path toward revenue and operating expense synergies, highlighting the complementary nature of the portfolio which we agree with. We found the insight helpful, but remain hesitant to underwrite accelerating growth in the combined entity given the complexity of the integration and without better understanding of the steps that have been taken to improve Worldpay’s growth. We look forward to learning more from management at JPM’s Global TMC Conference in Boston on May 13, 2025."

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