Analysts At Baird Like The Risk/Reward In Global Payments Shares

The company reported its fourth-quarter results in July end and since then FX is ~0.25 percent less headwind on a year-over-year basis in respect of revenue and EPS in the first two quarters of the fiscal year 2017.

In a research note, the analyst said, "We believe fx is now a ~$0.03 yoy EPS headwind to Q1-17 slightly better than when GPN last reported (~$0.04 headwind). This is ~2.7 percent headwind to FQ1-17 net revenue compared to ~2.9 percent headwind when they last reported."

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The brokerage listed five factors to back its thesis on favorable risk/reward. The first is the incredible execution in the last few years resulting in steady beat. The second is that the stock has the potential to move toward $100 in the next 18-month period based on the estimated cash EPS of $4.50–$5.00 a share in fiscal year 2018. The third related to continuous tailwinds faced by the industry.

The fourth is that a number of possible gains could add 15–20 percent EPS growth for multiple years. The fifth factor is pricing maximization on a long-term basis, incremental share buyback, and possible truck-in acquisitions.

At time of writing, the stock was down 0.91 percent on the day at $76.12.

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