Market Overview

Vantiv Will Be The Merchant Acquirer To Own Over 2018, Says Buckingham

Share:
Vantiv Will Be The Merchant Acquirer To Own Over 2018, Says Buckingham

One analyst thinks payment processing company Vantiv Inc (NYSE: VNTV) will be the merchant acquirer to own over the course of 2018.

The Analyst

Buckingham Research Group analyst Chris Brendler upgraded his rating on Vantiv from Neutral to Buy and increased his price target from $77 to $90.

The Thesis

Following the release of third quarter results from Vantiv and WORLDPAY GRP PLC (OTC: WPYGY), expectations have been lowered, Brendler said in a note. Brendler is waiting for near-term headwinds to be better reflected in the stock.

The recent merger update from Vantiv and Worldpay revealed slower-than-expected revenue growth at Worldpay, details concerning cost synergies, improved visibility on revenue synergies and clarity on pro forma financials, Brendler said.

Brendler maintains his 2019 accretion estimate at 5 percent and sees potential upside from top-line and cost synergies and accelerated debt paydown.

Although Buckingham is still worried about 2018 Worldpay dilution, it thinks the stock has already begun discounting the upside seen for 2019.

"With E-COM revenue synergies boosting the top line outlook to 10+%, we believe VNTV will become the merchant acquirer to own over the course of 2018 and we want to be early," the note said.

The firm clarified that Vantiv's leverage to e-commerce and the potential for 10 percent organic top-line growth justifies a premium valuation for the stock.

Price Action

Vantiv shares are up over 22 percent in the year-to-date period. The price target represents 24 percent upside from current levels.

Related Links:

Square Falls Following Q3 Earnings

What's In Your Wallet? New Bull Calls On Visa, American Express

Latest Ratings for VNTV

DateFirmActionFromTo
Jan 2018Initiates Coverage OnOverweight
Jan 2018UpgradesOutperformTop Pick
Dec 2017UpgradesHoldBuy

View More Analyst Ratings for VNTV
View the Latest Analyst Ratings

Posted-In: Buckingham Research Group Chris BrendlerAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (VNTV + WPYGY)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
IBMWells FargoMaintains140.0
PNCWells FargoMaintains147.0
TWOUDA DavidsonMaintains17.0
IDYAOppenheimerInitiates Coverage On17.0
MBRXOppenheimerInitiates Coverage On2.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

'Tis The Season For This Retail ETF

Argus Awaits A Better Entry Point For Thor Industries, Downgrades To Hold