UPDATE: BofA Securities Double Upgrades Shift4 Payments (FOUR) to Buy

BofA Securities analyst Mike Colonnese upgraded Shift4 Payments (NYSE: FOUR) from Underperform to Buy with a price target of $94.00 (from $72.00).

The analyst comments "While we are mindful of the stock’s hefty multiple (shares trade at ~12x F22 net revs) and the potential near-term risk from rotation out of growth stocks, we see the potential for meaningful upside to near and longer term estimates driven by a sharp recovery in payment volumes as FOUR is significantly levered to reopening (restaurants and hospitality account for 60% of end to end volumes), and believe there is scarcity value here with FOUR being on a very short list of high growth small-cap Payments stocks. We are raising our PO to $94 (from $72) which is now based on a blend of 12x our 22E net revs and our DCF model (we previously used 46x 22E EPS and our DCF model, but believe P/S is a more appropriate valuation metric for FOUR)."

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 $82.79 yesterday.

You May Also Be Interested In

• Carlisle (CSL) PT Raised to $205 at Jefferies on Improving Demand Trends and Capital Deployment
• Hermes International (RMS:FP) (HESAY) PT Raised to EUR800 at Deutsche Bank
• Wedbush Upgrades IMAX Corporation (IMAX) to Outperform on Pent-Up Demand