Global Payments (NYSE: GPN) has recently been downgraded by both TD Cowen and Jefferies, with both firms moving their ratings from “Buy” to “Hold” and setting new price targets at $78 and $75, respectively. The shift in sentiment follows the company’s announcement of a $24.25 billion acquisition of Worldpay and the sale of its Issuer Solutions business to FIS for $13.5 billion.
🧩 TD Cowen expressed reservations about the added complexity the Worldpay acquisition introduces. At a time when investors prefer cleaner, more focused business models, this move injects execution risk and financial leverage. Though the Issuer Solutions divestiture aligns with long-term strategy, analysts don’t see this as a short-term catalyst for upside.
🤔 Jefferies echoed similar doubts, pointing out that acquisitions focused on scale in the merchant acquiring space have not consistently delivered returns. With Global Payments increasing its exposure to more cyclical business lines, there’s concern that the market may not reward these moves amid economic uncertainty.
💸 On the dividend front, Global Payments maintains a modest yield of 0.9%, offering an annual payout of $1.00 per share. The company has reliably distributed dividends for 25 consecutive years. Payments are made quarterly, with the most recent ex-dividend date on March 28, 2025, and the payment date on April 8, 2025.
🕵️♂️ While GPN is reshaping its business to focus more squarely on merchant solutions, the current analyst view is one of caution. Execution risks and questions around long-term synergies are front and center. Investors will want to keep an eye on how integration efforts unfold and how the market digests this major strategic pivot.