Global Payments (GPN): Evaluating Valuation Following High-Profile Sports Partnership Expansion

Global Payments is making headlines following a multi-year global partnership with Harris Blitzer Sports & Entertainment. The company will now be the Official Payment Technology Provider for the Prudential Center, New Jersey Devils, and Philadelphia 76ers. This marks an expansion into high-profile sports venues.

See our latest analysis for Global Payments.

Despite landing this high-visibility partnership, Global Payments’ share price has slid 30.5% year-to-date, and the one-year total shareholder return stands at -24.7%. Short-term weakness is apparent and momentum has faded in recent months, but investors are clearly weighing near-term risks against the company’s longer-term growth story and recent wins in the payment tech space.

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With shares trading at a significant discount to analyst targets and the latest partnership highlighting longer-term growth, the question arises: Is Global Payments undervalued at current levels, or is the market already factoring in its future prospects?

Most Popular Narrative: 24.6% Undervalued

The prevailing narrative sets Global Payments’ fair value at $103.18, compared to its last closing price of $77.76, suggesting a wide valuation gap that has captured analyst attention.

The expanding rollout of the Genius integrated POS platform across the US and international markets positions Global Payments to capitalize on the ongoing movement from cash to digital payments and e-commerce growth, likely supporting accelerating revenues and new market share wins.

Read the complete narrative.

There is big ambition hiding behind this fair value. Analysts are projecting a leap in recurring revenues and a future profit multiple typically reserved for sector leaders. What assumptions are powering this bullish outlook? Delve in to see the surprising trajectories driving this target.

Result: Fair Value of $103.18 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, large-scale acquisitions and integration execution remain key risks. These factors could disrupt revenue stability and challenge long-term earnings growth for Global Payments.

Find out about the key risks to this Global Payments narrative.

Build Your Own Global Payments Narrative

If you'd rather dig into the numbers yourself or think a different story is unfolding, you can shape your own narrative in just a few minutes: Do it your way

A great starting point for your Global Payments research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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