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.

The company lowered its revenue forecast from $1.06bb to $1.05bb
and lowered its EPS forecast to $1.75 from $1.84. Wall Street is
punishing it by sending shares down 13%. Last year EPS was 1.54 so the
company is still experiencing double digit growth. $250mm net cash in
the bank, the electronic payment processing company trades at just 10x
trailing cash flows and probably even less on forward cash flows. This
company gets upgraded this week when people realize how cheap it is.
The Columbia Acorn Fund, one of the best value funds out there with a
17% average annual 5 year return, owns the stock. Here's the holdings
of the target="_blank">Columbia Acorn Fund.

Super Growth

Upgraded by Sun Trust Rbsn Humphrey from Neutral to Buy