Global Payments Downgraded by Nomura to Neutral (GPN)
Global Payments (NYSE:GPN) was downgraded by analysts at Nomura from a “buy” rating to a “neutral” rating in a research report issued to clients and investors on Wednesday, TheFlyOnTheWall.com reports. They currently have a $66.00 price target on the stock, up from their previous price target of $57.00. Nomura’s price target would indicate a potential upside of 4.17% from the stock’s previous close.
The analysts wrote, “We are upgrading Total System Services (TSS) to Buy from Neutral based on our view that investors will increasingly focus on the largest, fastest-growing, and highest-margin businesses (North America and NetSpend) where we see upside to expectations. The company as a whole is at a point where it will see accelerating revenue and EPS growth, as it turns the page on price pressure and lost business headwinds, enjoys margin expansion, and repurchases shares (sooner than expected). Our TP goes to $38 from $29 (based on the current forward multiple of 16x on our above-consensus 2015 EPS estimate of $2.42). We are also downgrading Global Payments (GPN) to Neutral from Buy. Our TP goes from $57 to $66 (based on 15x our 2015 FY EPS estimate of $4.41). Our downgrade is based largely on valuation. Our bullish investment case (relief from Canada, margin upside, and accelerated capital return) has largely been played out and we see a more balanced risk/reward to owning GPN shares at these levels.”
A number of other firms have also recently commented on GPN. Analysts at Jefferies Group raised their price target on shares of Global Payments from $59.00 to $72.00 in a research note to investors on Thursday, November 14th. They now have a “buy” rating on the stock. Separately, analysts at Cowen and Company raised their price target on shares of Global Payments from $52.00 to $60.00 in a research note to investors on Monday, October 28th. Finally, analysts at Oppenheimer raised their price target on shares of Global Payments from $55.00 to $63.00 in a research note to investors on Wednesday, October 9th. They now have an “outperform” rating on the stock. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating and seven have assigned a buy rating to the stock. The stock currently has an average rating of “Hold” and an average target price of $57.13.
Global Payments (NYSE:GPN) traded down 2.00% on Wednesday, hitting $62.092. The stock had a trading volume of 144,053 shares. Global Payments has a 1-year low of $43.73 and a 1-year high of $64.41. The stock has a 50-day moving average of $62.1 and a 200-day moving average of $52.86. The company has a market cap of $4.526 billion and a price-to-earnings ratio of 20.87.
Global Payments (NYSE:GPN) last released its earnings data on Tuesday, October 1st. The company reported $1.00 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.95 by $0.05. The company had revenue of $629.70 million for the quarter, compared to the consensus estimate of $623.79 million. During the same quarter in the previous year, the company posted $0.88 earnings per share. The company’s revenue for the quarter was up 6.7% on a year-over-year basis. Analysts expect that Global Payments will post $4.02 EPS for the current fiscal year.
Global Payments Inc (NYSE:GPN) is a provider of electronic payments transaction processing services for consumers, merchants, independent sales organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United States, Canada, the United Kingdom, Spain, the Asia-Pacific region, the Czech Republic, and the Russian Federation.
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