Why Global Payments is on investors’ radar

Global Payments (GPN) has drawn fresh attention after a recent share-price move, with the stock roughly flat over the past month but showing a negative return over the past 3 months.

At a share price of US$71.62, Global Payments has seen short term share price momentum fade, with a 7 day return of 2.07% compared with a 90 day share price return of 5.69% and a 5 year total shareholder return of 65.58%.

If this kind of mixed performance has you thinking about where else growth or resilience might show up in your portfolio, it could be worth scanning for other payment and software names with strong leadership via 19 top founder-led companies

With Global Payments trading at US$71.62, showing solid double digit revenue and net income growth and a wide gap to analyst price targets, the key question is whether this is real value or if markets already expect stronger growth.

Most Popular Narrative: 49.6% Undervalued

At a last close of $71.62, the most followed narrative on Global Payments puts fair value at $142, a big gap that frames the rest of the story.

Global Payments (GPN) presents a potential investment opportunity at current levels, with three key factors referenced as possible drivers of outperformance in 2025:

• Q4 2024 momentum in Merchant Solutions with reported POS adoption (added approximately 3,000 new locations)

• Strategic sale of AdvancedMD for $1.125 billion at an indicated attractive multiple, with $700 million referenced for shareholder returns

• Integration of EVO Payments noted as enhancing B2B capabilities and geographic reach

According to Maxell, the narrative cites the gap between the last close and that fair value estimate as being supported by assumptions about revenue, margins and cash generation.

Result: Fair Value of $142 (UNDERVALUED)

However, sustained competition in digital payments and any setbacks integrating acquisitions like EVO Payments could quickly challenge this undervalued narrative that investors are watching.

Next Steps

With both risks and rewards in play, this is exactly the kind of mixed setup where your own judgment matters most. Take a closer look at the underlying data and then weigh the 2 key rewards and 3 important warning signs

Looking for more investment ideas?

If Global Payments has you thinking more broadly about your portfolio, do not stop here. The right mix of other stock ideas could sharpen your edge.

• Spot potential value by checking companies that screen well on quality and valuation through the 61 high quality undervalued stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.