UPDATE: BofA Securities Double Upgrades Shift4 Payments (FOUR) to Buy
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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)."
Shares of Shift4 Payments closed at $82.79 yesterday.
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