Goldman Sachs analysts downgraded Global Payments (NYSE:GPN) from Buy to Neutral, reducing the price target to $122 from $155. The change reflects growing concerns over the company’s revenue outlook amid strategic shifts and planned divestitures.
Global Payments has been recognized for its strong portfolio of software assets and payments solutions, which previously supported sustainable merchant revenue growth and robust free cash flow. These strengths enabled significant share repurchase initiatives, a key factor in the previous bullish outlook. However, the company is now undergoing a transition that raises challenges for its near-term performance.
According to the analysts, revenue growth is expected to decelerate in 2025 as Global Payments realigns its go-to-market strategy and proceeds with a series of divestitures. The divestitures, including AdvancedMD, are anticipated to reduce annual revenue by $500 million to $600 million. Combined with restructuring efforts, these moves could result in reported revenue growth ranging from a slight decline of 1.5% to marginal growth of 0.7% in 2025.
While Global Payments remains a strong player in the payments sector, the anticipated impact of its strategic realignment and divestitures introduces downside risks to consensus revenue expectations.