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Goldman Sachs Analysts Predict Upward Trend for Payments Sector in 2024

Goldman Sachs analysts recently shared their 2024 outlook for the payments sector, foreseeing potential valuation gains after a challenging 2023 that saw industry headwinds and lagging market performance.

While they anticipate a possible uptick in valuations this year, the analysts also warn of continued fundamental disparity. They highlight a consistent trend of weaker discretionary spending and pressure on average transaction sizes, favoring companies with unique tailwinds driving revenue growth or surpassing profitability forecasts.

Among their top choices for large-cap payments, Goldman Sachs singles out Global Payments Inc. (NYSE:GPN), citing an expected acceleration in earnings per share (EPS) growth and a revival in capital returns.

In a noteworthy move, analysts upgraded TOST stock to Buy, resulting in a 1% uptick in share value. Their rationale rests on the potential for market share expansion, potential outperformance in expense management, and an appealing valuation relative to industry peers.

The analysts have set a $24 per share price target for TOST stock.