Goldman Sachs Mixed on Global Payments (GPN) As Industry Valuation Multiples Remain Under Pressure

Group 1 - Global Payments Inc. (NYSE:GPN) is recognized as one of the 11 best very cheap stocks to buy according to billionaires [1] - Goldman Sachs reinstated coverage of Global Payments with a "Neutral" rating and an $88 price target, highlighting the company's size after acquiring Worldpay, which created the largest merchant-acquiring business globally [2] - The firm cautioned that industry valuation multiples are under pressure due to structural competition in merchant acquiring, and there are concerns about potential market share loss, which may hinder significant multiple expansion despite the company's increased presence [3] Group 2 - Analyst updates in February reiterated a cautious approach, with Global Payments' Q4 results and FY2026 guidance indicating 5% adjusted net revenue growth (excluding dispositions), 150 basis points of operating margin expansion, adjusted EPS of $13.80-$14.00, and free cash flow conversion above 90% [4] - Following a Q4 earnings beat, RBC Capital raised its target price to $97 from $95 with a "Sector Perform" rating, noting that management's FY2026 outlook appeared appropriately calibrated [5] - Global Payments serves companies and financial institutions worldwide by providing payment technology and software through its Merchant and Issuer Solutions sectors, with headquarters in Atlanta [5]