Barclays analyst Darrin Peller maintained an Equal-Weight rating and raised his price target from $75 to $85 for Global Payments Inc. GPN. The analyst cited long-term upside potential with short-term risk.
In short-term risk, the analyst cited North American credit card growth of about 7 percent and estimates of 4 and 3 percent for Q3 and Q4, respectively, as well as faster-than-expected waning EU pricing benefits following Brexit.
Contributing to perceived long-term potential is the Heartland Payment Systems (HPY) integration and international expansion.
"Assuming Heartland contributes $1 billion in net revenue to GPN's FY17 results and that Heartland contributed $95-$100 million in Q4," said Peller. "GPN's North American guidance for "nearly 70% growth" implies ~6% organic growth when giving them credit for a full 70% growth rate."
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