Susquehanna sees growth potential for Global Payments shares through EVO integration By Investing.com

Susquehanna analysts have confirmed their positive assessment of the stock of Global Payments (NYSE:) and left the price target unchanged at $147.00. Despite recent changes, such as the acquisition of EVO and the sale of various consumer assets, the investment firm continues to view Global Payments as a leading provider in the field of payment processing and issuing services.
This assessment comes ahead of Global Payments’ Analyst Day scheduled for September 24, where the company is expected to provide deeper insights into its business.
Susquehanna expects the upcoming Analyst Day to focus on the benefits of EVO integration for the merchant segment, as well as providing updates on previously announced advances in innovative point-of-sale solutions.
The Issuer segment, which primarily serves financial institutions, is expected to remain a focus for Global Payments unless a divestiture is announced. This business is considered to be best-in-class and is expected to be a key focus of the presentations.
In addition, Susquehanna expects Global Payments to discuss its strategies for driving B2B services as part of its broader commerce enablement strategy. Analysts expect these discussions to underscore the company’s efforts to increase efficiency and leverage its assets for further growth.
In other recent developments, Global Payments Inc. reported a 6% increase in adjusted net revenue for the second quarter to $2.32 billion. The Merchant Solutions segment grew 8% to $1.8 billion, while the Issuer Solutions segment grew 4% to $527 million.
Various analyst firms, including BMO Capital and Stephens, have adjusted their price targets for Global Payments to reflect the latest developments and quarterly results. TD Cowen reiterated its buy rating for Global Payments and stressed the importance of the new Investor Day as a pivotal moment for the company. Analysts expect Global Payments to explain its strategic plan, provide insights into the growth and margin prospects in the merchant business and send a clear message on future strategy. This could lead to a re-rating of the stock.
Insights from InvestingPro:
As Global Payments (NYSE:GPN) prepares for its Analyst Day, data from InvestingPro offers interesting insights: The company boasts a market capitalization of $28.26 billion. The current price-to-earnings (P/E) ratio is 20.31, with the calculated P/E for the trailing twelve months to Q2 2024 estimated at 16.83. This indicates a potential undervaluation relative to near-term earnings growth. Particularly notable is the extremely low PEG ratio of 0.25 for the same period, which pointed to a potential undervaluation based on earnings growth.
InvestingPro Tips highlights that analysts are forecasting net growth for Global Payments this year. This is consistent with the company’s ability to pay dividends continuously for 24 years – a sign of financial stability. In addition, Global Payments has posted a strong total return of 17.9% over the past three months, indicating positive momentum in the market.
For investors seeking a more comprehensive analysis, additional InvestingPro Tips are available that delve deeper into the company’s financial health and market performance.

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