Global Payments remains a Strong Buy with strong cash flow and undervalued stock despite challenges.

Global Payments (GPN) is rated a Strong Buy due to its robust free cash flow, enabling significant share buybacks and dividends as it aims to return $7.5 billion to shareholders by 2027. Despite recent guidance cuts and macroeconomic challenges, the company’s intrinsic value is estimated well above its current stock price, suggesting it is undervalued. Post-Worldpay integration, GPN targets a net leverage ratio of about 3.0x by 2027, with mostly fixed-rate debt and a manageable cost of capital. This outlook supports the stock’s potential for significant re-rating in the future.