EVOP - EVO Payments cut to Neutral at BTIG as no higher bids seen emerging
- EVO Payments ( NASDAQ: EVOP ) was cut to Neutral by BTIG analyst Mark Palmer, as he considers the valuation implied by Global Payments' offer to buy EVOP for $34 per share in cash as fair.
- "The transaction makes sense for both firms," Palmer wrote in a note. And the potential for higher bid to emerge seems to be low, he said.
- That price that Global Payments ( GPN ) agreed to pay "implied a multiple of ~10x FY23 EBITDA including the impact of ~$125M in run-rate EBITDA synergies expected to result from the deal," Palmer said. The implied valuation is close to the level at which he had valued the stock prior to the announcement.
- Previously (Aug. 1), Global Payments ( GPN ) stock gains as Wall Street cheers EVO Payments deal
- SA contributor The Value Investor says GPN's earnings multiples look compelling, but leverage could result in some pressure
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EVO Payments cut to Neutral at BTIG as no higher bids seen emerging