UPDATE: Morgan Stanley Initiates Global Payments at Underweight on Potential Loss Position

Loading...
Loading...

In a report published Wednesday, Morgan Stanley analyst Smittipon Srethapramote initiated coverage on Global Payments GPN with an Underweight rating and $49.00 price target.

In the report, Morgan Stanley noted, “Although the company has one of the highest degree of international diversification in the acquiring/processing space, we believe its relatively large exposure to independent sales organizations (ISOs) in the US could position it for potential loss in market share as some ISOs may decide to in-source processing. Additional risks could come from large ISOs negotiating contracts with better pricing, which could put pressure on margins. We acknowledge that GPN is trading at a discount to its merchant acquiring/processing peers, partially due to the ISO concerns, and perhaps due to muted international growth over the recent past, but believe that the company is most at risk to multiple compression should worries over disintermediation from new entrants return.”

Global Payments closed on Tuesday at $48.90.

date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorInitiationAnalyst RatingsMorgan StanleySmittipon Srethapramote
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...