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Berenberg Capital Markets assigned a Buy rating to Shift4 Payments (NYSE:FOUR) in new coverage, citing its ability to drive growth amid challenging market conditions through increasing market share supports the bullish stance.
Shift4 (FOUR) stock gained 0.9% in Friday morning trading.
The company provides omnichannel card acceptance, payment processing products, and software integrations to restaurants, hotels, and stadiums/arenas, and is expanding to other venues.
“We believe a wide gap exists between FOUR’s strong growth prospects and the stock’s discount valuation, a divergence that may be due to questions about the sustainability of its above-market operating performance or to concerns about macroeconomic headwinds faced by the consumer-facing businesses the company serves,” analyst Mark Palmer said in a note to clients.
The analyst sees further growth in converting customers to high-yield end-to-end payment offerings from low-yield payment gateway products. International expansion, card-not-present payment processing, and new verticals are “extending (an) already lengthy runway for growth,” he said.
Palmer’s Buy rating on Shift4 (FOUR) contrasts with the SA Quant rating of Hold and compares with the average SA Analyst rating of Buy, and the average Wall Street rating of Strong Buy.
