Investing.com -- Though financial technology sector enters 2025 with a generally positive outlook, supported by macroeconomic support and trends in payment digitization, analysts warn of “normalized” returns following outsized gains in 2024, driven by multiple expansions across growth and transaction processing stocks.
Global Payments Inc (NYSE:GPN) was downgraded to "equal weight" with price target cut by $5 to $120, amid execution risks tied to strategic moves, including divestitures, brand consolidation, and foreign exchange headwinds, alongside slowing core payment growth.
Paycor HCM Inc (NASDAQ:PYCR) also saw a downgrade to "equal weight" with a price target of $22.50, reflecting its pending $4.1 billion acquisition by Paychex Inc (NASDAQ:PAYX). The deal, set to close in the first half of 2025, represents a 19% premium over its recent average price and is expected to face minimal antitrust hurdles.
Meanwhile, Euronet Worldwide Inc (NASDAQ:EEFT) remains a top pick, rated "overweight" with a $130 price target. The stock benefits from stable revenue growth, ATM network expansion, and macro tailwinds in Europe. Analysts expect strong seasonality and robust performance in ePay and money transfer to drive near-term gains.
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