FOUR - Stephens initiates Shift4 Payments at Equal-Weight as it awaits a better entry point
2023-04-14 12:12:08 ET
- Stephens initiated coverage on Shift4 Payments ( NYSE: FOUR ) with an Equal-Weight rating as it awaits a better entry point, but has a constructive view on the payment processer's positioning and outlook.
- "We believe the premium valuation fairly reflects the above peer growth/margin profile and confidence in the 2023 outlook, which is based on the digitization of restaurant/hotel industries, benefit of the Gateway sunset strategy, and management's track record of execution," said analyst Charles Nabhan.
- He noted that Shift4's ( FOUR ) premium valuation and economic sensitivity of end-markets has led to an "increasingly cautious ratings distribution".
- Nabhan said its risk/reward is balanced given the economic sensitivity of its verticals, which are highly levered to discretionary spend.
- Stephens set an $80 price target on Shift4 ( FOUR ), implying 9.5% potential upside to its last close.
- Shares of Shift4 ( FOUR ), which gained 64.3% in the last six months, fell 4.3% on Friday.
- The research firm's stance is in line with SA Quant's Hold rating , but contrasts bullish sell-side ratings.
For further details see:
Stephens initiates Shift4 Payments at Equal-Weight as it awaits a better entry point