Truist Begins Coverage of Global Payments (GPN) with Hold Rating

On June 2, Truist initiated coverage of Global Payments Inc. (NYSE:GPN) with a Hold rating and a $79 price target, pointing to tempered expectations for the company’s near-term performance. While acknowledging the stock appears attractively valued on the surface, the firm expressed concerns about limited organic growth potential.

A payment terminal in action with customers apart of the experience.

In a note to investors, analysts noted that Global Payments Inc. (NYSE:GPN) is in the midst of efforts to streamline operations and simplify its business model. Despite these ongoing improvements, Truist believes it’s challenging to forecast organic revenue growth above the 4% to 5% range. That modest outlook tempers enthusiasm, particularly when compared to peers in the payments space with more compelling growth trajectories.

One key variable is the pending asset swap between Global Payments’ Tsys unit and FIS’s Worldpay, which could reshape the company’s strategic positioning. However, until that deal closes, Truist anticipates shares will remain range-bound. The firm added that while management’s actions are moving in a positive direction, stronger opportunities exist elsewhere among large-cap financial technology companies. With investor sentiment cautious and visibility into stronger revenue acceleration still lacking, Truist prefers to take a wait-and-see approach.

The initiation reflects a balanced view: recognition of Global Payments’ progress, but a reluctance to recommend the stock until catalysts become clearer and growth re-acceleration materializes.

Global Payments Inc. (NYSE:GPN) is a Fortune 500 payments technology company operating in over 100 countries, with segments in Merchant and Issuer Solutions. The company is undergoing a multi-year transformation to streamline operations, unify its global brand, and focus on high-growth areas. Strategic efforts include cloud modernization, cross-selling, and customer experience improvements, with a goal to complete key initiatives by mid-2027 while evaluating asset dispositions for value creation.

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