Global Payments teams up with PwC to expand reach: time to buy?

Global Payments Inc. (NYSE:GPN) said Wednesday that it plans to expand to new markets after launching a partnership with PwC. The Atlanta GA-based payments company will collaborate with the global professional services firm to deliver software and services to financial institutions, neo banks, retailers, fin techs, and startups across the globe.

PwC will be a charter member in Global Payments’ new Total System Solutions (TSYS) partner program. President, TSYS Issuer Solutions and Senior Executive Vice President, Global Payments, Gaylon Jowers said:

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“By collaborating with PwC, we are able to further enhance our distribution and conversations with business leaders as they make investments to modernize their platforms, expanding our target addressable markets.”

Will PwC partnership drive GNP stock price in Q3?

Global Payments will realise several benefits from the partnership with PwC. However, the monetary impact will arrive a little later as the new TSYS partner program gains traction in the market. 

Nonetheless, investors will be keen to pounce on the stock before those benefits come to fruition because, by the time they arrive, the stock price will be higher. Therefore, the announcement of the partnership is perfect for proactive investors to buy GPN shares in July ahead of significant gains ahead.

From a valuation perspective, the stock seems steeply valued at a P/E ratio of 89.80. However, the forward P/E of 20.36 indicates high growth potential in the next 12 months.

Technical overview: my GPN stock price prediction for Q3

Technically, the GPN stock price appears to be enjoying strong trendline support after falling sharply at the end of April. The stock recently bounced back to avoid crossing to oversold conditions of the 14-day RSI. However, it is yet to reach overbought conditions, leaving room for more gains.

Investors can target extended rebounds at approximately $198.79 or higher at $207.39. The key support levels are $187.13 and $178.53.

Bottom line: the catalyst for buying GPN shares now

Although GPN shares look steeply valued at the current P/E ratio, the stock price appears to have found strong support. The Forward P/E ratio indicates a potential undervaluation ahead of an exciting period.

Today’s partnership announcement promises expansive growth for Global Payments as it looks to extend its reach to new markets across the globe.

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