Credit Suisse Raises Price Target to $50 for Global Payments (NYSE:GPN)

Credit Suisse maintains its “Neutral” rating on Global Payments Inc. (NYSE: GPN), while reducing its estimates for the company. The target price for GPN has been increased from $50 to $45 due to higher peer group valuations and a more stable economic environment.

The Firm said “GPN's money transfer business posted revenue growth of 8.5% and -3.1% in FY08 and FY09, respectively. Segment margins for the business were 6.3% in FY08 and 11.9% in FY09, well below the corporate average of ~20%. This transaction will allow GPN to concentrate on its core merchant acquiring business and management stated that proceeds from the sale would be used to expand GPN's merchant acquiring presence around the world.”

It also said” Owing to the loss of money transfer's revenue and profit contribution (treated as a discontinued operation), we are lowering our FY10 EPS by $0.12, to $2.53, and our FY11 EPS estimate moves to $2.87 from $2.95. Our estimates remain above guidance due to the recent rally of the Canadian dollar.”