Analyst Note| Brett Horn, CFA |
Like its peers, Global Payments saw strong growth on the acquiring side of the business in the first quarter, which was slightly offset by some headwinds in its smaller segments. Overall revenue increased 8% on an adjusted basis, and the company saw some margin improvement. We will maintain our $186 fair value estimate. We continue to see the shares as undervalued from a long-term perspective, as we believe the market is overly skeptical about the narrow-moat company’s long-term prospects.