Truist Securities Begins Coverage of Shift4 Payments (FOUR) Stock With Hold Rating

On June 2, Truist Securities analysts began coverage on Shift4 Payments, Inc. (NYSE:FOUR)’s stock with a “Hold” rating and price objective of $97, as reported by The Fly.

A business person using a mobile point of sale device outside of a retail store.

The firm analysts expressed worries related to Shift4 Payments, Inc. (NYSE:FOUR)’s acquisition-led growth strategy, hinting that it makes the company reliant on continually finding new deals. It subjects the company to churn risk because of underinvestment in its software and point-of-sale assets.

However, the firm anticipates that success in Shift4 Payments, Inc. (NYSE:FOUR)’s hotel and stadium verticals will continue. The company highlighted that its M&A strategy has resulted in a massive collection of customers, whereby it can cross-sell its services. The Boston Red Sox, Herberber Bakeries, and the Ace Hotel Toronto are just 3 examples of this strategy.

The company continues to see signs of stable consumer spending trends in Q1 2025 remaining largely in line with what it witnessed exiting 2024, with a marginal deceleration mainly because of the leap year and other seasonal factors.

For FY 2025, the company raised its gross revenue guidance, less network fees, to between $1.66 billion – $1.73 billion, reflecting a rise of 23% – 28%. Also, it raised adjusted EBITDA guidance to between $840 million – $865 million, implying 24% – 28% growth.

Shift4 Payments, Inc. (NYSE:FOUR) is engaged in the provision of software and payment processing solutions.

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