Global Payments stock price target raised to $100 by Raymond James

Global Payments (GPN) reported strong second-quarter results, surpassing earnings expectations and raising its full-year adjusted EPS outlook to the high end of 10-11% growth, supported by an accelerated $500 million share repurchase program. Raymond James subsequently raised its price target to $100, maintaining an Outperform rating, citing the company's strategic progress, including HSR clearance for the Worldpay/Issuer deal. The firm views GPN as having a favorable risk/reward profile, noting its perceived undervaluation despite mid-teens EPS growth potential.

Analysis

Global Payments (GPN) demonstrated solid operational execution in its second quarter, delivering earnings that surpassed analyst expectations by approximately 1% and raising its full-year adjusted EPS growth forecast to the high end of the 10-11% constant currency range. This improved outlook is underpinned by an enhanced operating margin forecast and an accelerated $500 million share repurchase program, signaling strong management confidence. While revenue was in line with estimates, the company reaffirmed its fiscal 2025 constant currency revenue growth guidance of 5-6%, supported by early successes from its new Genius POS platform. In response, Raymond James reiterated its Outperform rating and increased its price target to $100 from $92. A key strategic milestone was achieved with HSR clearance for the Worldpay/Issuer transaction, which remains on track for a first-half 2026 close. From a valuation perspective, Raymond James highlights a favorable risk/reward profile, noting that GPN trades at less than 6 times the firm's 2026 pro forma EPS estimate despite projecting mid-teens EPS growth potential, a view supported by InvestingPro data suggesting the stock is undervalued with a P/E of 13.6x.

Key Decisions for Investors

• Given the combination of a modest earnings beat, raised EPS guidance, an accelerated share buyback, and positive analyst commentary, investors may view the stock as attractively valued, especially in light of the low forward pro forma P/E multiple cited by Raymond James.
• Investors should closely monitor the progress of the Worldpay/Issuer deal, as its successful completion by the first half of 2026 is a key catalyst baked into the long-term earnings and valuation thesis.
• While the EPS outlook is strong, it is crucial to watch for sustained top-line performance, as the company's ability to meet its 5-6% revenue growth target is essential for validating the long-term growth narrative beyond margin improvements and buybacks.