UBS Group Reaffirms Neutral Rating for Global Payments

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UBS Group recently reaffirmed their “Neutral” rating for Global Payments ($NYSE:GPN), the leading worldwide provider of payment technology and software solutions. Global Payments is a leading technology company that provides innovative payment solutions for businesses of all sizes around the world. They also provide secure and reliable payment processing services and a variety of other associated services, such as data security, risk and fraud management, reporting, and more. Their comprehensive suite of payment solutions includes point-of-sale payments, mobile payments, eCommerce, integrated payments, invoicing, and virtual cards. They also offer custom solutions tailored to the specific needs of businesses, such as merchant solutions, customer loyalty programs, and data analytics.

Global Payments has been recognized for its world-class customer service, reliable technology, and industry expertise. They believe that the company’s product portfolio is unlikely to be significantly disrupted in the near term and that their competitive position is likely to remain strong. They also view Global Payments as well positioned to capitalize on the growth opportunities in the global payments industry.

Price History

On Monday, UBS Group reaffirmed its neutral rating for Global Payments Inc., a leading provider of payment technology and software solutions. The stock opened at $110.4 and closed at $108.8, representing a 2.1% drop from the prior closing price of 111.1. UBS analysts note that Global Payment’s second quarter results were slightly above consensus estimates, but they remain cautious on the stock.

They believe that while the competitive landscape should remain supportive, there may be downside risks to their near-term margin and revenue growth, given the uncertainties in the global economy. Despite this sentiment, UBS still believes that Global Payments has attractive long-term growth potential and maintains its neutral rating on the stock. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Global Payments. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Global Payments. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Global Payments. More…

Key Ratios Snapshot

Some of the financial key ratios for Global Payments are shown below. More…

Analysis

At GoodWhale, we recently conducted an analysis of GLOBAL PAYMENTS’s wellbeing. According to our Star Chart assessment, GLOBAL PAYMENTS has been classified as a ‘cheetah’. This kind of company is typically characterized by high revenue and earnings growth, but is considered less stable due to lower profitability. Given this profile, we believe that investors who are looking for rapid growth and high dividend payments may be interested in this company. Furthermore, GLOBAL PAYMENTS has a high health score of 7/10 with regard to its cashflows and debt, suggesting that it is capable to safely ride out any crisis without the risk of bankruptcy. Moreover, GLOBAL PAYMENTS is strong in dividend and growth, medium in profitability and weak in asset. Overall, although the company is considered less stable compared to its peers, its current financial situation suggests that it is a viable investment option for certain types of investors. More…

Peers

The company operates in three segments: Merchant Services, Issuer Solutions and Card Services. Global Payments Inc’s main competitors are The Brink’s Co, Thomson Reuters Corp and BLS International Services Ltd.

– The Brink’s Co ($NYSE:BCO)

Brink’s Company is a provider of security and logistics services. The company operates in more than 50 countries and employs over 70,000 people. The company has a market cap of 2.85B as of 2022 and a ROE of 97.45%. Brink’s provides a broad range of services including cash management, ATM servicing, armored car transportation, and security solutions for businesses and governments.

– Thomson Reuters Corp ($TSX:TRI)

Thomson Reuters Corp is a large Canadian multinational media and information company with a market cap of 67.4 billion as of 2022. It has a wide range of businesses including news, information and analytics, and tax and accounting software. Its return on equity was 7.59% in 2020.

– BLS International Services Ltd ($BSE:540073)

BLS International Services Ltd is a market leader in the provision of outsourced visa and passport processing services. The company has a strong focus on customer service and has a proven track record in the delivery of high quality services. BLS International Services Ltd has a market capitalisation of 68.62B as of 2022 and a return on equity of 13.87%. The company offers a wide range of services including visa processing, passport processing, identity management and biometric services.

Summary

UBS Group has reiterated a “Neutral” rating on Global Payments stock, based on their analysis of the company’s financials and prospects. UBS believes that Global Payments’ current share price does not reflect its market position as a leader in the payments industry, and that the company is well positioned for long-term growth. UBS also noted that Global Payments has strong fundamental metrics and attractive cash flow generation, and that it is diversifying its business into new areas such as consumer finance and e-commerce.

UBS believes that Global Payments’ outlook is positive and that the company is capable of delivering long-term value to shareholders. As such, UBS suggests that investors continue to hold the stock.