Shift4 Payments (FOUR) PT Lowered to $100 at Evercore ISI, '#4 Top Pick'

Evercore ISI analyst David Togut lowered the price target on Shift4 Payments (NYSE: FOUR) to $100.00 (from $105.00) while maintaining a Outperform rating.

The analyst comments "For 1Q/24, although FOUR fell 4% shy of consensus adjusted EBITDA on lower-than-expected E2E volumes, management maintained their 2024 net revenue guidance, calling out a material expected ramp in 2H24 as extensive new contract signings, especially in stadiums, hotels and restaurants convert to revenue and earnings. For this year, management tightened the higher end of the E2E payment volume range and raised the lower end for the adjusted EBITDA guide. Meanwhile, 2024 adjusted FCF conversion guide improved to 60%+ from prior 58%+. In 1Q24, FOUR announced the acquisition of Revel Systems and a $500 million of share repurchase authorization. We remain constructive on FOUR given multiple opportunities to drive superior net revenue growth and margin expansion led by rising adoption of Skytab; competitive pricing; increasing presence across core verticals like restaurants, gaming, sports & entertainment; international expansion; and cost measures. Trimming our 2024E adjusted EBITDA by $20 million to $660 million on a slightly lower revenue forecast and 2025E Adjusted EBITDA by $10 million to $840 million on modestly reduced margin expectations. Keeping 2026E Adjusted EBITDA estimate unchanged at $1.02 billion. Lowering target price to $100 from $105 based on 13x 2025E EV/EBITDA, unchanged from prior. Sticking with Outperform Rating and #4 Top Pick."

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