Morgan Stanley upgraded Global Payments to Overweight from Equal-weight and raised its price target to $100 from $65, arguing the payments processor offers an attractive risk-reward profile. The brokerage said recent channel checks point to improving competitive positioning for both the company's Genius small-business platform and the recently acquired Worldpay business, with feedback from enterprise customers indicating Worldpay's product offering, ease of adoption and customer service have improved. Morgan Stanley also raised its 2027 and 2028 share repurchase forecasts to about $3 billion annually, citing stronger confidence in free cash flow generation and capital allocation. The brokerage trimmed its 2026 adjusted revenue growth forecast to 4% from 5% due to ongoing weakness in Middle East travel, but increased its growth outlook for 2027 and 2028 to 6% annually, while lifting its 2027 adjusted EPS estimate to $16.30 from $15.82 and projecting 2028 adjusted EPS of $20.71. Morgan Stanley acknowledged risks from the complex Worldpay integration, earnings quality concerns and continued disruption to Middle East travel, but said these issues are already reflected in the stock's valuation, which it views as excessively pessimistic relative to the company's long-term growth prospects.
Global Payments IncMorgan Stanley upgraded to Overweight, raised price target to $100, and increased share repurchase forecasts.