.September 25, 2024 10:09 AM

Global Payments (NYSE:GPN) saw a sharp decline in shares after revealing a disappointing fiscal year 2025 outlook, causing the stock to drop over 6% on Tuesday and an additional 2% in pre-market trading.

BTIG downgraded GPN from Buy to Neutral due to concerns about the company’s growth strategy beyond 2025, removing its price target and placing the stock in a “wait-and-see” category for the transition year.

Citi analysts, on the other hand, maintained a Buy rating on GPN, viewing the 2025 outlook as manageable and highlighting the company’s efforts to streamline operations and potentially achieve $500 million in gross savings by mid-2027.

Despite challenges, successful execution of GPN’s transformation strategy could lead to long-term growth opportunities for the company.