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Piper Sandler on Thursday assumed coverage on Shift4 Payments (NYSE:FOUR) at Overweight as the firm’s shift in focus to building an end-to-end payments offering will likely drive continued faster-than-market growth.
The research firm highlighted Shift4’s (FOUR) payments volume growth, gross revenue growth and adj. EBITDA growth since coming out of the pandemic.
“The company has been successful in converting customers to its end-to-end payments offering, moving away from lower-yield payment gateway volumes. We believe the end-to-end strategy is a powerful driver of FOUR’s economics,” said analyst Clarke Jeffries.
“FOUR is uniquely positioned to gain market share in large, highly-fragmented verticals due to experience solving difficult payments/software problems with existing merchant systems,” he added.
Piper Sandler set a $69 price target for the payment processing firm, implying 29.1% potential upside to its last close.
Shift4 (FOUR) stock, which gained ~58% in the last six month, rose 6.2% on Thursday.
Piper Sandler’s rating is in line with SA Quant’s Strong Buy rating on Shift4 (FOUR). Wall Street analysts on average also rated the stock Buy.
Read why SA contributor Innovation Sustainability Growth believes Shift4 (FOUR) has what it takes to be an industry leader.
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