Nomura Securities Reiterates a 'Buy' on Global Payments (GPN); Beyond Margins and ISO Accounting Noise

Nomura Securities reiterates a 'Buy' on Global Payments (NYSE: GPN) price target of $57.00.

Analyst, Bill Carcache, said, "GPN’s forward P/E multiple has been highly correlated with the company’s operating margins. We believe that the declines in GPN’s operating margins have been driven by ISO accounting noise and that they do not reflect economic reality. We’ve identified three key metrics that we believe better capture the real strength of GPN’s operating performance relative to peers: revenue growth, reported earnings growth and returns. Over the six-year period from 2005 to 2011, we find that GPN has delivered the third-best combination of revenue growth, earnings growth and returns behind Visa (NYSE: V) and MasterCard (NYSE: MA). Looking ahead, we expect GPN to generate the second-best combination of revenue growth, earnings growth and returns behind MA. We believe that current valuation levels provide an attractive buying opportunity."

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 $51.92 yesterday.

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