Merchant acquiring isn't the most exciting business - truth be told,
the entire acquiring / network / interchange system is probably boring
to most people - but Global Payments (GPN)
has a lot of interesting drivers working right now. The company's
transition away from ISOs and toward direct acquisition should be good
for margins over time, and the company has an uncommonly strong position
outside the U.S. With the company also embracing integrated payments,
higher revenues and margins should also be in play down the line.
Global Payments' efforts haven't gone unnoticed. Since I last wrote,
the shares are up about 20% on increasing bullishness over the
company's efforts to expand into integrated offerings and speculation
that the company's overseas position could make it an M&A target.
These shares don't seem mispriced in the market right now, but could
still generate a good high single digit to low double-digit annual
return from here.
Please continue here:
Global Payments' Transformation Continues
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