GPN
Morgan Stanley upgrades Global Payments to Overweight on Worldpay optimism
Article Summary
BUY- Global Payments (NYSE: GPG) was upgraded to Overweight from Equal-weight after Morgan Stanley raised its price target to $100 from $65, citing improving execution, stronger buyback capacity, and a depressed valuation.
- The company's Genius small-business platform and recently acquired Worldpay business are gaining traction with small and medium-sized businesses, supporting durable mid-single-digit revenue growth.
- The brokerage raised its 2027 and 2028 share repurchase forecasts to about $3 billion annually, citing stronger confidence in free cash flow generation and capital allocation.
- Morgan Stanley trimmed its 2026 adjusted revenue growth forecast to 4% from 5%, reflecting ongoing weakness in Middle East travel, but increased growth outlook for 2027 to 6% annually and lifted 2027 adjusted EPS estimate to $16.30 from $15.82, while projecting 2028 adjusted EPS of $20.71.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | -12.6% | 25% | 0.0 ptsDeclining (-12.6%) - NOT a growth stock |
| EPS Growth Next 5Y ? | 15.8% | 25% | 50.0 ptsMeets Minimum (15.8%) - Passes screener |
| Target Price Upside ? | 13.6% | 20% | 50.0 ptsMeets Minimum (13.6%) - Target: $93.27 vs Current: $82.11 |
| Gross Margin % ? | 67.3% | 15% | 80.0 ptsVery Healthy (67.3%) - High-quality margins |
| Drawdown from 52-Wk High ? | -9.4% | 15% | 20.0 ptsBarely a Dip (-9.4%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About GPN
- Global Payments Inc. provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific.
- It offers authorization, settlement and funding, customer support, chargeback resolution, reconciliation and dispute management, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services.
- The company also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added solutions and services, such as point-of-sale software, analytics and customer engagement, payroll and reporting, and human capital management.
- It markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, independent sales organizations, payment facilitators, and financial institutions.
- The company was founded in 1967 and is headquartered in Atlanta, Georgia.