Oppenheimer reiterated an Outperform rating on Global Payments (NYSE: GPN), and raised the price target to $88.00 (from $85.00), following the company's 2Q earnings report. GPN delivered 2Q cash EPS growth of ~16% Y/Y to $0.89 compared to the Street's 0.84 estimates.

Analyst Glenn Greene commented, "Global Payments announced strong 2QFY17 results with nearly 58% Y/Y revenue growth (+8% organic constant currency, by our est.) and cash EPS of $0.89 (vs. our/ Street's $0.85/0.84 ests.). EPS benefited by ~$0.02 relative to our est. from a lower than expected tax rate and share count. GPN's CY17 outlook calls for net revenue of $3.35-3.45B, up to 90bps Y/Y reported margin expansion (+140bps in CC), and reported cash EPS of $3.70-3.90 (24% CC growth at the midpoint). GPN transitioned to calendar-year reporting on 1/1/17. Management now anticipates total Heartland (HPY) cost synergies of $135M (vs. $125M previously). GPN trades at ~18x our CY18E EPS, which we view as attractive. We reiterate our Outperform rating and raise our PT to $88 (from $85)."

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Shares of Global Payments closed at $79.79 yesterday.