Analyst James Faucette from Morgan Stanley maintained a Hold rating on Shift4 Payments (FOUR – Research Report) and decreased the price target to $107.00 from $109.00.
James Faucette has given his Hold rating due to a combination of factors surrounding Shift4 Payments’ recent activities and market position. The acquisition of Global Blue is seen as a strategic move that could potentially enhance Shift4’s offerings and provide significant cross-selling opportunities. However, the acquisition is expected to be slightly dilutive to EBITDA margins initially, which may temper immediate financial benefits.
Furthermore, while the acquisition is anticipated to add to revenue growth in the coming fiscal year, there are concerns about the integration process and its impact on growth rates. The market’s underestimation of international travel trends, which are tied to Global Blue’s business, presents both a risk and an opportunity. Overall, while the acquisition aligns with Shift4’s strategic goals, the uncertainties surrounding its integration and immediate financial impact justify a Hold rating at this time.
Faucette covers the Technology sector, focusing on stocks such as Endava, Block, and Accenture. According to TipRanks, Faucette has an average return of 5.7% and a 65.25% success rate on recommended stocks.
In another report released on February 19, KBW also maintained a Hold rating on the stock with a $125.00 price target.