UPDATE: J.P. Morgan Reiterates Overweight Rating, Lowers PT on Global Payments on Disappointing F3Q Results

In a report published Wednesday, J.P. Morgan analyst Tien-tsin Huang reiterated an Overweight rating on Global Payments

, but slightly lowered the price target from $57.00 to $56.00. In the report, Huang noted, “GPN reported disappointing F3Q rev/EPS of $579mm/$0.87 (JPM and Street @ $577mm/$0.88 and $581mm/$0.89), with North America margins, transactions and Canadian spreads remaining a drag, which hurts given high stock sensitivity to these metrics – Canada was real source of downside despite easy comp. On a positive note, GPN regained its global PCI compliance status, which should remove a sentiment overhang and could open the door to new merchant wins. We are trimming estimates and our Dec '13 PT to $56 (from $57) but remain Overweight, as we continue to believe accelerating profit growth can drive multiple expansion, while acknowledging shares lack a near-term catalyst and will likely be down in the short run.” Global Payments closed on Tuesday at $49.01.