Goldman Sachs analysts offered their insights into the payments sector's outlook for 2024, focusing on card spend, consumer spending trends, fundamental factors, and expectations for business-to-business (B2B) spending.
After a challenging 2023 marked by industry headwinds and underperformance compared to the broader market, Goldman Sachs anticipates that valuations in 2024 may see “an upward bias.”
However, they caution that fundamental dispersion could remain elevated in the coming year. Given consistently weaker discretionary spending and pressure on average transaction sizes, the preference is for
companies with idiosyncratic tailwinds driving topline growth or exceeding profitability expectations.
In this context, Goldman Sachs identifies Global Payments Inc. (NYSE:GPN) as its top pick for large-cap payments.
“We see accelerating EPS growth and a resumption of capital return,” analysts said.
Elsewhere, analysts upgraded TOST stock to Buy. Shares moved 1% higher in response.
“Our out of consensus call is based on 1) room to take market share, 2) the potential to outperform on better than expected expense mgmt, and 3) attractive valuation vs peers,” analysts concluded.
Analysts have a $24 per share price target on TOST stock.