2023-04-18 12:58:21 ET
- JPMorgan on Tuesday moved to a Neutral rating on Global Payments ( NYSE: GPN ) from a Not Rated designation as it sees limited catalysts to re-rate higher.
- "GPN shares appear cheap on many measures, and as much as we'd like to recommend the stock, we think patience is required for management to execute and lift certain weights on the stock," said analyst Tien-tsin Huang.
- Weights limiting upside include high leverage at 3.75x, above-average deal cost synergy targets, and outlook assuming stable macro backdrop.
- "We don't underestimate the CEO's ability to unlock value, so we maintain a positive bias and would be more constructive on shares should growth expectations move lower and/or capital friendly actions are taken," said Huang.
- JPMorgan set a $124 price target on Global Payments ( GPN ), implying 13% potential upside to its last close.
- Shares of Global Payments ( GPN ) -1.1% in afternoon trade.
- SA Quant also rates the stock Hold , while sell-side ratings are largely bullish.
- SA contributor James Long is bullish on Global Payments ( GPN ) as its current valuation is attractive.
For further details see:
JPMorgan turns Neutral on Global Payments amid limited catalysts, weights on stock