Jefferies cuts Global Payments to Hold on resumption citing lack of catalyst

As previously reported, Jefferies downgraded Global Payments to Hold from Buy with a price target of $105, down from $140, after reinstating coverage following a period of restriction. While the firm believes downside is limited given that the stock’s valuation is “near trough levels,” it struggles to see what drives a re-rating in the near term as the firm sees Global Payments lacking a catalyst. The fiscal year outlook for legacy Merchant growth is at risk based on trends through May, leverage remains elevated, and the recent “unexpected” CEO transition added an overhang, the analyst tells investors.