20 Fintech Stocks Riding the AI Wave Higher

06. Global Payments Inc. (NYSE:GPN)

Number of Hedge Fund Holders: 66

Global Payments Inc. (NYSE:GPN) is a prominent player in the fintech sector, specializing in payment technology and software solutions across card, check, and digital payments in the Americas, Europe, and Asia-Pacific. The company operates through two primary segments: Merchant Solutions and Issuer Solutions. Merchant Solutions focuses on payment processing, authorization, customer support, and integrated software that enhances operational efficiency for businesses. The Issuer Solutions segment caters to financial institutions and retailers, helping them manage card portfolios and streamline payment processes.

As part of its growth strategy, Global Payments Inc. (NYSE:GPN) has been increasingly integrating AI into its offerings. AI technologies are enhancing their capabilities in areas such as fraud detection, customer insights, and operational efficiencies, positioning the company favorably in a competitive market. During the recent earnings call, CEO Cameron Bready highlighted the accelerated demand for embedded payments and commerce solutions, driven by AI advancements and customer preferences for seamless digital transactions.

On October 7, 2024, Barclays reaffirmed its “Overweight” rating for Global Payments with a price target of $120.00, despite concerns surrounding projected slowdowns in the Merchant Solutions segment for fiscal 2025. Barclays analysts emphasized that the anticipated mid-single-digit growth in adjusted net revenue for this segment should not cause alarm, as the company is strategically repositioning to re-accelerate growth. They indicated that sub-segments, including Point of Sale (POS) and Integrated & Embedded solutions, are expected to grow at a mid-single-digit-plus rate, driven by robust market demand.

Other analysts have expressed mixed sentiments. RBC Capital has maintained an “Outperform” rating while adjusting its price target to $143, while Mizuho Securities and KeyBanc have trimmed their targets to $100 and $135, respectively, reflecting cautious outlooks for 2025. Seaport Global Securities downgraded Global Payments from Buy to Neutral due to growth concerns.

Global Payments Inc. (NYSE:GPN) strategic initiatives, including the launch of its next-generation POS software and expansion into international markets like Germany, signal its commitment to harnessing AI and technology for growth. The company’s plans to return $7.5 billion to shareholders over the next three years underscore its confidence in sustained revenue and earnings growth through 2027. With its focus on leveraging AI for enhanced customer experiences and operational efficiencies, Global Payments Inc. (NYSE:GPN) is well-positioned to capitalize on the evolving fintech landscape.