2023-04-12 10:14:16 ET
- Global Payments ( NYSE: GPN ) stock advanced as much as 2.5% in Wednesday morning trading after Goldman Sachs upgraded the stock to Buy from Neutral as its recent selloff creates a "highly attractive" risk-reward and thus a buying opportunity.
- The firm argued in a note that GPN has been relatively weak since the start of 2023 (up 8.1%) amid the fallout from the turmoil in the banking sector and subsequent macroeconomic uncertainty.
- "This is despite the company pointing towards better top line trends across both segments of the company, as well as the significant progress the company has made in simplifying their business through strategic M&A and capital allocation," Goldman wrote.
- The Buy rating disagrees with the Quant system rating of Hold and converges with the average Wall Street analyst rating of Buy.
- On March 29, GPN made it to Bernstein's top 12 stock picks list. The stock was then reinstated at Overweight at Barclays, citing its beaten-down valuation diverging from the company's healthy growth.
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Global Payments upped to Buy as Goldman sees 'highly attractive' risk-reward