Barclays Maintains an 'Equalweight' on Global Payments (GPN); 1Q FY12 Preview; Expect Top Line to be Strong, Though Focus on Margins
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Price: $93.05 -1.88%
Rating Summary:
23 Buy, 24 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
23 Buy, 24 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Equalweight' on Global Payments (NYSE: GPN) price target of $48.00.
Barclays analyst says, "We expect GPN to deliver revenue growth of 18% y/y (+15% y/y constant currency), with our assessment of processed card volumes and retail sales through August continuing to show solid y/y growth, even with ongoing macroeconomic uncertainty. We expect top-line strength to be driven by all regions, with solid transaction growth in the US and Europe, further stabilization in Canada (with a modest y/y tailwind from FX, consistent with guidance), and growth in Asia slightly above normalized levels. Europe will also benefit from the acquisition of "la Caixa," which occurred during 3Q FY11. Though strong fundamentals likely position GPN on track to meet its FY12 guidance of 13-16% top-line growth on a constant currency basis, we note that a continued strengthening of the dollar over the remainder of the year could potentially present a headwind, perhaps leading to a slightly more tempered outlook."
For more ratings news on Global Payments click here and for the rating history of Global Payments click here.
Shares of Global Payments closed at $40.39 yesterday.
Barclays analyst says, "We expect GPN to deliver revenue growth of 18% y/y (+15% y/y constant currency), with our assessment of processed card volumes and retail sales through August continuing to show solid y/y growth, even with ongoing macroeconomic uncertainty. We expect top-line strength to be driven by all regions, with solid transaction growth in the US and Europe, further stabilization in Canada (with a modest y/y tailwind from FX, consistent with guidance), and growth in Asia slightly above normalized levels. Europe will also benefit from the acquisition of "la Caixa," which occurred during 3Q FY11. Though strong fundamentals likely position GPN on track to meet its FY12 guidance of 13-16% top-line growth on a constant currency basis, we note that a continued strengthening of the dollar over the remainder of the year could potentially present a headwind, perhaps leading to a slightly more tempered outlook."
For more ratings news on Global Payments click here and for the rating history of Global Payments click here.
Shares of Global Payments closed at $40.39 yesterday.
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