Oppenheimer Raises Price Target on Global Payments (GPN) to $136 Following 1Q16 Earnings
Oppenheimer reiterated an Outperform rating on Global Payments (NYSE: GPN), and raised the price target to $136.00 (from $120.00), following the company's 1Q16 earnings results. The company announced strong results with revenue growth of ~8% Y/Y to $537M and EPS growth of ~25% to $1.57.
Analyst Glenn Greene commented, "GPN announced strong 1Q:FY16 results with revenue growth of ~8% Y/Y (11% in constant currency) to $537M (vs. our $512M estimate) and EPS growth of ~25% to $1.57, reflecting strong US direct organic growth and solid CC performance internationally. Following the strong quarter, GPN raised its FY16 guidance, which now calls for 6-8% revenue growth (unchanged although now absorbing 1pt of incremental FX), 50bps Y/Y CC margin expansion (vs. +30bps previously), and 14-17% EPS growth (from 11-15%). We remain encouraged by GPN's ability to realize strong revenue and profitability growth despite persisting FX headwinds. Accordingly, we maintain our Outperform rating and raise our price target to $136 (from $120)."
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Shares of Global Payments closed at $128.20 yesterday.