©Reuters.Global Payments (GPN) raises funding with Evercore ISI due to improved growth outlook
global payments (NYSE:) on Friday raised Evercore ISI's stock price from Inline to Outperform, and the analyst raised the company's price target from $129 to $185 per share.
Analysts told investors they decided to upgrade the rating based on the company's improved growth prospects.
Leading up to the company's 2023 Q4 earnings report on February 14, Evercore ISI expects 2024 to be a year of steadily improving financial performance. This was due to “clearer comparability following the one-year anniversary of the sale of the NetSpend and Gaming businesses, increased EVOP cost synergies, and superior positioning in high-growth technology-enabled solutions.” .
“We assume meaningful upward revisions to our 2024 and 2025 adjusted EPS consensus estimates, as well as multiple expansions due to lower capital intensity and improved FCF translation,” the analysts wrote. There is.
They believe the key factors driving better-than-expected performance include the potential for high-single-digit revenue growth from increased software adoption, significant and sustained margin expansion, and an improved FCF outlook that significantly exceeds consensus expectations. It added that this includes share buybacks and a “near rock-bottom 11x valuation.” 2020 PER.”
