Buy - Price 46.18 on Sept. 29
by Janney Montgomery Scott

We're increasing our 12-month fair-value estimate [on this payment-processor] to 50, from 48. We believe the forward multiple will expand due to accretive acquisitions over the next twelve months, efficiency improvements from platform consolidations, and investors' seeking to hedge exposure to interchange regulation. GPN generates consistent 18% returns on invested capital, and has a balance sheet that can support additional debt, [as well as] $5.28 a share of cash on hand. Our fair-value estimate represents 20 times forward estimates; the stock is trading at 17.9 times. Market cap: $3.7 billion.

Hold - Price 42.35 on Sept. 2
by Signal Hill

After solid performance in fiscal 2009 (highlighting the resiliency of the transaction-processing business, despite global economic shocks), management guided to 6% to 9% revenue growth, "modest" margin expansion, and 9% to 14% earnings growth. We are assuming revenue and [earnings-per-share] growth near the low end of the range at 7% and 10%....While overall card-transactions...[are] expected to [reach] a 12% compound annual growth rate from 2006 to 2012, international growth is estimated at the mid-to-high-teens range... While we like the long-term international play, we believe upside...is capped by continued weak U.S. retail spending....Trading at 17 times our [fiscal year] '10E-EPS, GPN appears fully valued, considering near-term growth is likely to remain below trend.... [Yet] GPN is targeting the untapped international merchant-processing market opportunity aggressively. A series of joint ventures and acquisitions has established GPN as a strong player in fast-growing markets, particularly the Asia-Pacific region and Russia. Market cap: $3.5 billion.

By targeting small merchants in a rough economy, Global Payments is solidifying profitable business relationships that should continue to take off when things turn around.

Market Outperform - Price 48.35 on June 18
by Avondale Partners

New 52 target. GPN [will] form a merchant-processing [joint venture] with HSBC in the U.K. GPN will pay $439 million in cash to acquire a 51% interest in the JV. The transaction is expected to be accretive to FY09 EPS. We believe [that] at current levels, shares of GPN offer investors an opportunity to buy one of the industry's leading merchant processors at a discount to long-term intrinsic business value. [GPN has been] increasing free cash flow and has a balance sheet with about $390 million in cash and no debt....We believe GPN shares more than reflect...negative sentiment...due to weakness in the U.S. to Mexico market...[Yet we think such] issues will be resolved by either a turnaround in the Mexican market or a sale. Market cap: $3.9 billion.

Credit Suisse said it is downgrading Global Payments (GPN) to Underperform from Neutral based on margin concerns and weak guidance. Also sees slower profit growth and potential economic headwinds. Maintained $35 target price.

New Carl Icahn

Stock Appreciation

Downgraded by Piper Jaffray from Outperform to Mkt Perform

Upgraded by William Blair from Mkt Perform to Outperform

By Barrington Research
GPN, a high-volume processor of electronic transactions, had third-quarter 2007 EPS of 44 cents -- [beating] our expectations and consensus...of 41 cents. We believe that GPN's preliminary guidance for FY08 has reduced the level of growth expectations yet, coupled with the FDC/KKR deal, has opened a window of opportunity to purchase the shares at below private-market value. Raising to Outperform; initial price target, 46.