Goldman Sachs downgrades Global Payments due to revenue growth concerns

From Financial Modeling Prep: 2025-01-09 09:45:00

Goldman Sachs analysts downgraded Global Payments (NYSE:GPN) from Buy to Neutral, lowering the price target to $122 from $155 due to concerns over revenue outlook amid strategic shifts and planned divestitures.

Global Payments, known for its software assets and payment solutions, previously saw strong merchant revenue growth and free cash flow, supporting share repurchase initiatives. However, a transition phase poses challenges for its near-term performance.

Analysts predict revenue growth to slow in 2025 as Global Payments realigns its strategy and divests assets like AdvancedMD, potentially reducing annual revenue by $500-600 million. This, along with restructuring efforts, could lead to a slight decline or marginal growth in reported revenue in 2025.

Despite being a key player in the payments sector, Global Payments faces downside risks to consensus revenue expectations due to the impact of strategic realignment and divestitures.



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