Global Payments: The Market Is Still Far Too Pessimistic

Global Payments remains a Strong Buy, with significant re-rating potential despite recent guidance cuts and macro headwinds. GPN continues to generate robust free cash flow, enabling aggressive buybacks, dividends, and progress toward its $7.5 billion shareholder return target by 2027. Post-Worldpay integration, GPN targets ~3.0x net leverage by 2027, with over 90% fixed-rate debt and a weighted average cost of ~4%. Even under conservative assumptions, GPN's intrinsic value is estimated well above the current price, reflecting a discount rate difficult to justify.

During my previous coverage of Global Payments Inc. ( GPN ), I reiterated its Strong Buy rating, highlighting how the stock was still deeply undervalued despite a strong report and the ongoing Worldpay integration.