Shift4 Payments Poised for Strong Growth: Maintaining Buy Rating with $85 Price Target

BTIG analyst Andrew Harte has reiterated their bullish stance on FOUR stock, giving a Buy rating yesterday.

Andrew Harte has given his Buy rating due to a combination of factors that suggest strong future growth for Shift4 Payments. The company has reaffirmed its net revenue guidance for FY24, projecting over 25% organic growth, and has also slightly raised its outlook for EBITDA and free cash flow. Key customer acquisitions across various industry verticals, including the international market, have been highlighted as significant positive developments. Moreover, a substantial share repurchase program has been announced, further instilling confidence in the stock’s potential.
Additionally, Harte’s optimism is buoyed by the expectation of a revenue ramp-up in the second half of the fiscal year, as several large customers are set to go live. This is expected to be bolstered by the anticipated successful integration of recent acquisitions and an expanding backlog from new customer wins. The company’s strategic acquisition of Revel and the authorized share buyback are also viewed as evidence of a prudent capital allocation strategy. With the current free cash flow yield deemed very attractive given the company’s growth profile, Harte maintains an $85 price target based on robust valuation metrics.

In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $75.00 price target.

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Shift4 Payments (FOUR) Company Description:

Shift4 Payments Inc is provider of integrated payment processing and technology solutions. The company offers software providers a single integration to an end-to-end payments offering, a powerful gateway and a robust suite of technology solutions (including cloud enablement, business intelligence, analytics, and mobile) to enhance the value of their software suites and simplify payment acceptance. The Shift4 Model is built to serve a range of merchants from small-to-medium-sized businesses to large and complex enterprises across numerous verticals, including lodging, leisure, and food and beverage.