Piper Jaffray Raises Price target on Global Payments (GPN) to $133 Following 14c EPS Beat
Piper Jaffray reiterated a Neutral rating on Global Payments (NYSE: GPN), and raised the price target to $133.00 (from $116.00), following the company's 1Q16 earnings. GPN beat consensus net revenue by 3% and delivered cash EPS of $1.57 vs. consensus $1.43. The company raised its fiscal 2016 cash EPS guidance range to $5.77-$5.92 vs. $5.60-$5.78 previously.
Analyst Jason Deleeuw commented, "GPN beat consensus net revenue by 3% and delivered cash EPS of $1.57 vs. consensus $1.43. Margins continue to surprise with 150bps of cash operating margin expansion y/ y driven by growth in higher margin channels (iPOS), the layering in of higher margin business acquisitions, Europe interchange benefits, and merchant demand for valueadded services (payments security and mobile). We raise our FY ’16/’17 cash EPS estimates from $5.77/$6.45 to $6.00/$6.95. We forecast greater margin expansion than implied in GPN’s guidance given multiple margin expansion drivers that we believe GPN has not fully baked into its guidance. We remain Neutral due to valuation, but acknowledge the potential for upside to our above-guidance estimates. Our PT moves from $116 to $133, which is based on 14.0x (previously 13.5x) our higher CY ’16E EV/ EBITDA."
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 $128.20 yesterday.